Bethesda, now under Microsoft’s ownership, has pulled the plug on multiple unannounced games across several of its studios, leading to layoffs and project shutdowns. The cancellations affect both in-house developments and external partnerships, including a title from Romero Games headed by Doom co-creator John Romero.
Developers at Romero Games confirmed on social media that their project lost funding from its publisher, resulting in layoffs at the studio. The move looks like it’s part of a bigger pattern, with reports saying Microsoft is ending publishing deals with other big-name partners, too. This includes rumors about Kojima Productions’ OD and Avalanche Studios’ Contraband possibly getting the same treatment.
The cancellations happen at the same time as major restructuring inside Microsoft’s gaming division. Since buying ZeniMax Media (Bethesda’s parent company) for $7.5 billion back in 2021, Microsoft has rolled out several rounds of layoffs and cost-cutting that have hit a bunch of Xbox studios. Big names like Tango Gameworks have gone under, and that studio was closed just weeks after dropping the hit Hi-Fi Rush.
Industry folks say most of the axed projects were stuck in long development cycles with not much to show for it. The projects reportedly include at least one huge online game and a handful of experimental titles that hadn’t been announced yet. While tentpole series like The Elder Scrolls VI and the upcoming Fable don’t look like they’re in trouble, there are still big question marks around other Xbox games that have been in the works for ages.
These decisions are happening as the game industry overall is dealing with layoffs and shakeups. After a big boom during the pandemic, a lot of publishers are now rethinking their jam-packed development schedules and focusing on fewer, bigger titles. Microsoft’s Game Pass strategy may also be changing to focus more on quality instead of pumping out tons of new releases.
From acquisition spree to budget freeze
Microsoft has spent nearly $90 billion in recent years buying up gaming companies, including the $7.5 billion ZeniMax deal and the massive Activision Blizzard purchase. These buys were supposed to beef up Xbox’s exclusive content and make Game Pass more attractive, but now the company is cutting back after slower sales and a new focus on AI projects.
The lack of official word about which projects are canceled has both developers and fans in the dark, but with layoffs and studio reshuffles already happening, the effects are clear. As Microsoft keeps tweaking its gaming plans, people are wondering what will happen with all the studios and franchises it owns now.
