As ZeniMax also faces cuts, Xbox seeks a "significant overhaul" to focus on Fallout, The Elder Scrolls, Quake, and other big franchises

Microsoft and Xbox are executing their most significant restructure in history, cutting approximately 3,200 jobs before the 2027 financial year ends. This overhaul impacts ZeniMax Media, Bethesda Softworks, Id Software, and ZeniMax Online Studios. While these studios remain open, they face substantial workforce reductions. The strategic shift aims to refocus resources on major franchises, including Fallout, The Elder Scrolls, and Quake, while some studios are being released to find new owners or become independent.