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  1. Games
  2. RPGs
  3. Fallout

Todd Howard says layoffs at Bethesda were "really tough": "We're going through a change so that we focus best on the franchises"

News
By Scott McCrae
Published 17 July 2026

Bethesda Game Studios was hit in the latest round of Microsoft layoffs

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Todd Howard
(Image credit: Xbox)
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As Bethesda announces what's going on with the future of the studio, director and producer Todd Howard has acknowledged the layoffs that have hit the studio as part of Microsoft's latest batch of staff cuts.

Speaking to Bloomberg, Howard calls the cuts at Bethesda Game Studios "really tough" for him and his colleagues. This latest round of cuts saw staff at the studio laid off as part of Xbox's seemingly now-yearly mass layoffs – including 18-year veterans of the company like Ray Lederer. Bethesda as a whole also got hit hard as we also saw fellow ZeniMax Studios id Software and ZeniMax Online Studios face heavy cuts.

Howard adds, "This is Bethesda's 40th anniversary, and there have been periods where we've gone through changes," referring to a portion of the 1990s where the studio was on the brink. But now, he says, "We're going through a change so that we focus best on the franchises and what we need to do to deliver for everybody."

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Word over the last week is that Xbox has been pushing Bethesda to focus on marquee titles with Bethesda Game Studios on The Elder Scrolls 6 and Fallout 5, while the wider ZeniMax studios work on Doom, Quake, and Wolfenstein.

Howard also spoke about his personal feelings on the layoffs with Windows Central, saying "I've been doing this a long time, whenever you've worked with people for, in some cases, many decades, and they're no longer here, that's really personally very difficult, and difficult for our teams."

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These interviews have come alongside word that Fallout 5 is "currently in preproduction," that Fallout 3 and Fallout: New Vegas are both getting remasters, and that Obsidian is returning to the post-apocalyptic RPG series for a new entry. But with layoffs across Bethesda and Obsidian, as one workers union has already suggested, it's hard not to see this as Microsoft trying to change the subject.

Video game fans are currently quite unhappy with everything going on at Xbox, with thousands of developers losing their jobs, and calling into question how these diminished numbers will affect development going forward. So a big blowout of every Fallout project everyone wants to know about – with nothing to actually show from them – arguably feels more like an attempt at a distraction or reassurance, rather than it being the right time to drop this news.

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Bethesda Softworks Bethesda Game Studios Obsidian Entertainment Xbox Game Studios
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Fallout: New Vegas Fallout 3
Scott McCrae
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Scott has been freelancing for over four years across a number of different gaming publications, first appearing on GamesRadar+ in 2024. He has also written for the likes of PC Gamer, Eurogamer, VG247, Play, TechRadar, and others. He's typically rambling about Metal Gear Solid, God Hand, or any other PS2-era titles that rarely (if ever) get sequels.

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