The Elder Scrolls Online (ESO) has faced significant challenges, including the cancellation of Project Blackbird in July 2025, which led to the layoff of 62 employees. In July 2026, Xbox's restructuring resulted in a reduction of 213 positions at Zenimax Online, shrinking the studio's workforce by approximately 60% within a year. Despite expressing optimism earlier in the year about refreshing animations and introducing new gameplay mechanics, the layoffs have led to the postponement of several updates until 2027. A representative from the development team emphasized the importance of maintaining quality over meeting deadlines.