Bethesda’s Layoffs Were “Really Tough”, Lets It “Focus Best” On its Franchises, Says Todd Howard

In an interview with Bloomberg, Howard discussed working with Obsidian on a brand-new Fallout project and Bethesda's path forward.

Posted By | On 20th, Jul. 2026

bethesda game studios logo

Bethesda’s Todd Howard has called the company’s recent layoffs a “really tough” experience for the studio and its various development teams. In an interview with Bloomberg, he also spoke about how the company behind game series like The Elder Scrolls and Fallout is now going through a change, and will focus best on its franchises.

“This is Bethesda’s 40th anniversary, and there have been periods where we’ve gone through changes,” he said. “We’re going through a change so that we focus best on the franchises and what we need to do to deliver for everybody.”

He also discussed the new projects under both franchises that are currently in the works. On the subject of the new Fallout game being developed by Obsidian, Howard spoke about being excited to work with the studio, which has gone through its own recent job cuts.

“We could not be more excited to work with Obsidian again,” he said, praising Obsidian for being able to hang on to “a core group of leaders and other developers that have been together for decades”.

When asked about the recent slate of announcements regarding new Fallout projects, which also includes remasters of Fallout 3 and Fallout: New Vegas, Howard said that Bethesda wants to be more transparent without necessarily spoiling any surprises that might delight players.

“We do realize we need to find a way to say a bit more so that our fans understand what we’re doing and why, while also protecting that moment when you really see the game and you press play,” he said.

The company had also previously confirmed that, while it is working on a host of projects right now, its “long-range destination” is going to be Fallout 5. However, no release dates for any of these projects have been announced for now, and Bethesda itself has noted that its primary focus is the development of The Elder Scrolls 6.

“With over 65 million copies sold, players are still exploring Skyrim 15 years later, but we know it’s been a very long wait for the sequel,” said the company in a statement. “We’re where we planned to be, loving how it looks, and playing it every day.”

While the full extent of how the layoffs may have affected Bethesda hasn’t yet been confirmed, a report from earlier this month indicates that it had been hit “particularly hard”. According to an email allegedly sent to staff by Studio head Jill Braff, the layoffs “reflect the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation.”

“To be successful in the future, we need to change course. We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players. I know that doesn’t make a day like today any easier.”

Bethesda is just one of the companies under Xbox to have been hit by layoffs, with the Microsoft division confirming that around 1,600 jobs had been cut. Division CEO Asha Sharma had also confirmed that around 1,600 more cuts are planned for the rest of the fiscal year.


Keep On Reading!

Valve Says Memory Crisis is “Still Getting Worse,” But Believes the Steam Machine is a Success

Valve Says Memory Crisis is “Still Getting Worse,” But Believes the Steam Machine is a Success

"We're basically building everything we can. We're limited by memory capacity, for sure," says Valve engineer ...

Xbox Wants a “Reliable Pipeline” of Exclusives, But Fans Shouldn’t “Overly Fixate” on Single-Player

Xbox Wants a “Reliable Pipeline” of Exclusives, But Fans Shouldn’t “Overly Fixate” on Single-Player

Chief content officer Matt Booty says, "I think that's a good rule of thumb, but it certainly isn't something ...

Marvel Tōkon: Fighting Souls Showcases Ghost Rider’s Fiery Attacks and Vengeance Gauge

Marvel Tōkon: Fighting Souls Showcases Ghost Rider’s Fiery Attacks and Vengeance Gauge

The Spirit of Vengeance is one of the strongest characters in Arc System Works' fighting game and has the move...

Halo Studios Doesn’t Have Any Other Projects in Full Development – Rumor

Halo Studios Doesn’t Have Any Other Projects in Full Development – Rumor

It also seems the future of the alleged Halo 2 and 3 remakes depends on how well the upcoming Halo: Campaign E...

Grand Theft Auto 6 “Must Be Monstrous” in Size, Says Former Rockstar Producer

Grand Theft Auto 6 “Must Be Monstrous” in Size, Says Former Rockstar Producer

"The fact that every single time they do a GTA, it's ludicrously bigger than before is like something that I t...

The Blood of Dawnwalker Will Have a Physical Disc Containing The Full Game

The Blood of Dawnwalker Will Have a Physical Disc Containing The Full Game

However, publisher Bandai Namco recommends downloading the day-one patch when the action RPG launches in early...