Layoffs at Xbox have reportedly had a significant impact on Bethesda and its teams, including those working on The Elder Scrolls Online. The extent of the layoffs and their effects on specific projects, such as The Elder Scrolls VI, are unclear, but they appear to be part of a broader shift in focus towards stronger franchises. The layoffs have also affected id Software, with reports suggesting significant staff reductions, and have prompted concerns and criticism from affected staff and the company's union.