Xbox CEO Asha Sharma’s internal playthrough of The Elder Scrolls 6 disrupted by a giant inflatable rat, as Bethesda union protests cuts

On Tuesday, August 12, Xbox CEO Asha Sharma visited Bethesda Game Studios’ Rockville, Maryland headquarters to preview The Elder Scrolls 6. The visit was immediately overshadowed by a significant labor protest organized by the Communications Workers of America (CWA) union, which represents employees across Xbox and Bethesda.

The CWA staged a memorable demonstration featuring a giant inflatable rat—colloquially known as “Scabby” in labor disputes—positioned outside the office building alongside approximately 800 red flags planted in the ground. Each flag represented an employee laid off by Microsoft in recent months. According to a WARN notice, 166 developers from Bethesda’s Rockville office were impacted by the recent workforce reductions.

The protest reflects ongoing opposition to Microsoft’s “Xbox Reset” initiative, which has triggered substantial layoffs across the division. Microsoft previously announced the elimination of 1,600 Xbox jobs last month, with another 1,600 positions scheduled to be cut throughout the remainder of the year. CWA members expressed sharp frustration with the scale of cuts, with union messaging emphasizing that “layoffs like this cannot continue.”

Despite the protests, Sharma proceeded with the Elder Scrolls 6 demonstration and later shared positive commentary about the gameplay, describing the experience as “incredible” and publicly teasing the game’s subtitle. The incident underscores the tension between corporate leadership and gaming industry workers during a period of significant upheaval, with unions becoming increasingly vocal about the impact of large-scale layoffs on studio employees.

Sources

• Xbox CEO Asha Sharma’s internal playthrough of The Elder Scrolls 6 disrupted by a giant inflatable rat, as Bethesda union protests cuts
• ‘One flag for each laid off dev:’ Union workers stage unmissable protest for Xbox boss Asha Sharma
• The Elder Scrolls 6 Demo to Xbox Leadership Included a Giant Inflatable Rat, Placed Outside Bethesda Offices in Protest at Microsoft’s Mass Layoffs
• Asha Sharma’s Bethesda Visit Overshadowed by Protests and a Giant Inflatable Rat
• Giant Rat Leads Protests Against Xbox Layoffs Outside Bethesda HQ
• Xbox CEO Asha Sharma says The Elder Scrolls 6 is ‘incredible’ as Bethesda protesters put up giant rat outside building