Bethesda Pushes Back On Xbox Control Claims, Yet New Fallout By Obsidian Hints Otherwise

Jul 23, 2026 at 07:42am EDT
A character in 'Fallout 4' explores the exterior of a weathered, industrial building with rusted green and brown metal walls.

Following confirmation that Xbox will cut a total of 3,200 jobs by July 2027, most of the studios still under their umbrella underwent significant upheavals, including studios that most believed would be safe from Xbox CEO Asha Sharma's business reset, such as Bethesda Game Studios.

Although the developer behind The Elder Scrolls and Fallout was affected by the Microsoft layoffs, it confirmed last week that it would double down on its two tentpole franchises, with remasters of Fallout 3 and Fallout: New Vegas on the way ahead of the fifth entry in the series. This sudden and unexpected confirmation seemed to suggest that Xbox is now in direct control of the popular post-apocalyptic franchise, but that doesn't seem to be the case.

Related Story Bethesda Doubles Down on Fallout and Elder Scrolls, Confirming Fallout 5 Preproduction and Fallout 3/New Vegas Remasters

"As with all things Fallout, Bethesda Game Studios manages the entire franchise, from games to movies and everything in between," a studio representative told YouTuber MrMattyPlays. "This is a shift in our approach to communications that Bethesda Game Studios have been contemplating for some time now."

As such, it definitely sounds like Bethesda wants to make sure fans know that the decision to have Obsidian Entertainment work on a new Fallout game following the excellent Fallout New Vegas wasn't forced on them, although given the current situation, it's very likely Xbox pushed heavily for this to happen, as well as for the new "franchise-first" model.

The Layoffs Will Not Impact The Elder Scrolls 6, Fallout 76, and The Elder Scrolls Online

Although many of the most pointed questions were left unanswered, Bethesda did provide some additional details on how the job cuts are, or rather, are not impacting the studios. The Elder Scrolls 6's development timeline is unaffected, as is Fallout 76's ongoing support. Additionally, ZeniMax Online Studios is fully committed to The Elder Scrolls Online and has plans for its future, although uncertainty still reigns, as designer Morgan Goin said last week that the previous content pace can't be matched following the workforce reductions that gutted the studio.

While Bethesda remains in control of Fallout and The Elder Scrolls, it's undeniable that something will inevitably change in the future regarding the management of two of the biggest Xbox IPs. With both The Elder Scrolls 6 and Fallout 5 set to release a decade, if not more, after their predecessors, it makes sense for the new Xbox leadership to push for faster releases. Hopefully, this won't cause a drop in gameplay quality.

About the author: Francesco De Meo has been covering video games and technology since 2012, starting his career at small outlets like Gamersyndrome and GeekSnack. After joining Wccftech gaming section in 2015, he quickly expanded his video gaming coverage with in-depth reporting, interviews with iconic industry figures such as Grasshopper Manufacture founder and No More Heroes creator Goichi "Suda51" Suda, Resident Evil series creator Shinji Mikami, Team NINJA's president and Nioh series director Fumihiko Yasuda, and Silent Hill creator Keiichiro Toyama, reviews and on-the-ground coverage of major industry events such as Gamescom and E3. When he's not reporting or reviewing, Francesco can be found playing the genres he loves most, spending time with his six cats, reading, writing music, playing guitar and drumming for his progressive rock band.

Follow Wccftech on Google to get more of our news coverage in your feeds.

Products mentioned