Headlines | Xbox Layoffs Reportedly Hit Bethesda Studios Hard

Headlines | Xbox Layoffs Reportedly Hit Bethesda Studios Hard

From The DayOne Show | A Video Games Podcast by DayOne

July 7, 2026 · 49 min

About this episode

This episode discusses the significant layoffs at Xbox and its impact on various studios, including Bethesda and Obsidian Entertainment.

Welcome to Headlines! Our twice weekly news focused show will be available on Spotify and everywhere else you'd expect our shows to be! On this episode: Layoffs hit Xbox - 3200 roles are being cut and five studios divested Obsidian Entertainment, the team behind Avowed, The Outer Worlds 2 and Grounded 2 are losing around 25% of their staff. id Software is reported to have lost nearly half the team, right before a new DLC lands for Doom: The Dark Ages Zenimax Online's Elder Scrolls and Fallout 76 Teams also have reportedly seen cuts. IO Interactive to close Istanbul Studio due to 'Project Fantasy' Xbox Funding Cuts Nintendo replacing Switch 2 hardware in the EU with new versions, ceasing Switch 1 production for European Markets. All this and more!

Topics covered

Keywords

Mentioned in this episode

Organizations: Xbox, Bethesda Studios, Obsidian Entertainment, id Software, Zenimax Online, IO Interactive, Nintendo

Products: Switch 2, Switch 1

Books & works: Avowed, The Outer Worlds 2, Grounded 2, Doom: The Dark Ages, Elder Scrolls, Fallout 76

Places: Istanbul

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