Bethesda confirms Fallout 5 amid Xbox layoffs

Bethesda has officially confirmed that Fallout 5 is in the works, even as Xbox goes through a sweeping reset that will cut around 3,200 employees over the next year, including major reductions at studios such as id Software and Obsidian Entertainment.

In a statement, Bethesda director Todd Howard said the company is doubling down on its biggest series.

“We’re investing more deeply in the worlds players love, giving creators a bigger role in shaping their experiences, and bringing our teams closer together so we can get our games into your hands sooner, support them longer, and continue building them alongside you for decades to come.”

There are still no concrete details about the next mainline Fallout. Howard said only that “Fallout is one of our biggest priorities today” and that “Fallout 5 remains our long-range destination,” with the project currently in preproduction. The confirmation comes more than a decade after Fallout 4, the last main entry in the series. Since then, the franchise has expanded through Fallout 76 and a live-action TV adaptation.

Howard also said a new Fallout game is in development at Obsidian, the studio behind 2010's Fallout: New Vegas. He added that Fallout 3 and New Vegas remasters are also in development, though neither has a release date.

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The Elder Scrolls VI and Starfield status

Howard offered another brief update on The Elder Scrolls VI, first announced in 2018. He did not share a release window, but said the game will use the same technology platform as Fallout 5.

According to Howard, The Elder Scrolls VI is now Bethesda’s primary development focus, with most of the team working on the next installment. He added that the studio is “where we planned to be, loving how it looks, and playing it every day.”

Howard also said Starfield “remains an important part of our future.”

These announcements align with Xbox’s broader strategy. Xbox CEO Asha Sharma previously said the company would focus more heavily on its most bankable franchises, aiming to become “one of the few companies that entertains more than a billion people each day.” That approach fits Microsoft’s $7.5 billion acquisition of ZeniMax in 2021.

But the timing is hard to miss. Xbox already held a major showcase in June, and Bethesda’s latest reveals arrive as the company tries to reassure fans and employees after the layoffs. They also landed in the same week that ZeniMax employees staged a rally in Maryland to protest the cuts.