id Software Halved, Cuts at Bethesda and Focus on Major Brands: Xbox's New Strategy After Layoffs

The video game industry continues to undergo a significant transformation, and the studios under Xbox are facing important changes following the announcement of 4,800 layoffs decided by Microsoft.

According to reports, Bethesda is among the most affected entities by these recent layoffs that have impacted various divisions of the ZeniMax group. The head of the studio, Jill Braff, reportedly communicated to employees that internal changes are linked to the need to build a stronger business foundation and ensure sustainable growth in the long term. The new strategy would involve a shift in approach: instead of organizing production primarily based on individual studios, Bethesda should focus more resources on its strongest franchises and on content that offers greater value to players.

This direction seems connected to rumors that the most important franchises, such as The Elder Scrolls and Fallout, will play a central role in the coming years. Other historic brands like Doom, Quake, and Wolfenstein are expected to continue their development.

Not only Bethesda but also id Software is feeling the impact of the personnel reorganization. The situation also concerns id Software, the studio responsible for the Doom series. According to some sources, about 50% of employees may have been affected by the cuts, a reduction that could translate into approximately 90 positions eliminated. Neither Microsoft nor the studio has officially confirmed all the details, but statements from former employees have confirmed the extent of the reduction.

Id Software, like other Xbox studios, is also represented by a labor organization. The Communications Workers of America has stated that it wants to request immediate negotiations to address aspects such as the exit conditions for the affected workers.

The reorganization seems to be pushing Xbox towards a more selective strategy, with less attention to numerous projects simultaneously and more investments in established brands. It remains to be seen what the concrete impact will be on the games in development and the future of the involved studios.