Developers at Bethesda Game Studios have voiced concern that Microsoft’s recent layoffs could delay The Elder Scrolls 6, a video game announced in 2018.

The layoffs, part of a larger restructuring at Microsoft, eliminated 1,600 jobs this week and are expected to affect another 1,600 positions over the next year, reducing the overall workforce by about 2.1%.

Executive Jill Braff told staff that the company needs to focus on projects with the highest likelihood of financial success, and Microsoft also closed five studios and cancelled several titles, including an upcoming sequel to Avowed.

A source told IGN that morale at the studio has been negatively affected, and the developer noted that no firm release date has been set for The Elder Scrolls 6.

Another developer warned that staff reductions could lead to replacements by contract workers or new hires who must learn the studio’s proprietary tools, potentially causing further postponement.

In addition to The Elder Scrolls 6, Bethesda is planning a future Fallout 5, while a separate Fallout project is being led by Obsidian Entertainment under former New Vegas director Josh Sawyer.

The potential delay reflects broader challenges within the studio as it navigates workforce reductions and shifting priorities, and the timeline for The Elder Scrolls 6 remains undetermined.