“Personally very difficult, and very difficult for our teams.” —Bethesda’s Todd Howard discusses Microsoft’s deep Xbox cuts, and finding optimism for the industry’s future
Microsoft’s unprecedented cuts to its Xbox division have sparked considerable concern about the capacity of remaining developers to deliver AAA-quality games. In response, Bethesda has sought to reassure audiences that major franchise entries remain in active development despite the organizational upheaval. Todd Howard emphasized that Fallout 5 and The Elder Scrolls VI continue to progress, signaling the company’s commitment to these cornerstone intellectual properties even amid broader restructuring.
This statement follows similar reassurances from id Software, the legendary DOOM developer also under Microsoft’s umbrella. The studio addressed rumors that it had been “gutted,” emphasizing that the team remains intact and productive, with plans for future DOOM titles still firmly on the roadmap.
The pattern of developer statements underscores the anxiety permeating the industry following Microsoft’s Xbox division overhaul. The cuts have eliminated several notable studios and significantly reduced headcount across the division, prompting widespread speculation about whether remaining teams possess adequate resources to execute ambitious AAA projects. Both Bethesda and id Software’s responses appear designed to restore confidence in their roadmaps while acknowledging the genuine difficulty of the transition. The situation reflects broader industry trends of consolidation and restructuring, with major publishers reassessing portfolio priorities and team compositions.