Yesterday’s layoffs at Xbox have cast a long shadow over the gaming community, with repercussions that are likely to resonate for some time. While some observers noted that no studios were officially closed, the reality of spinning them out to independence or new ownership raises questions about the future. The emotional toll on morale, particularly among long-standing development teams, cannot be understated.
A former developer from Elder Scrolls Online expressed these sentiments poignantly in a brief thread on X, reflecting on the current state of both the game and ZeniMax Online Studios, which reportedly saw half of its workforce affected by the layoffs. This drastic reduction has left many feeling disheartened about the studio’s direction.
Reflections on the Past and Future
The transition to Tamriel Unlimited, which occurred a year later, was seen as a turning point for the game. However, it often felt like an afterthought in the MMO landscape—akin to a second cousin to giants like World of Warcraft and Final Fantasy 14, recognizable yet overshadowed.
As the narrative unfolded, the situation appeared to grow more dire in 2025. Following a GDC talk that celebrated the notable success of TESO, game director Matt Firor—who also held the title of president at ZeniMax Online Studios—unexpectedly departed from the studio. Firor later attributed his exit to the significant layoffs at Microsoft that year, which also led to the cancellation of a new MMO project, known as Project Blackbird.
While there are no immediate indications of further drastic changes, the situation evokes memories of Amazon’s New World, a moderately successful MMO that was ultimately shelved when the company reassessed its ambitious gaming strategy.
In a heartfelt conclusion, Young, the former developer, lamented the loss of camaraderie and creativity within the team. “I’ve been gone for a while, but talking to people today and realizing there’s really no one left and no changing it now makes my heart ache,” he shared. “For the people, our game, who we were as a team and a studio. This is a serious loss, and I don’t think people know how much.”
