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BUSINESS · JUL 17, 2026

Bethesda Confirms Fallout 5 and Elder Scrolls VI Progress

Bethesda Game Studios announced pre-production on Fallout 5 and a new collaboration with Obsidian Entertainment amid mass layoffs across Microsoft's Xbox gaming division.

Bethesda Game Studios confirmed on July 17, 2026, that it has begun pre-production on Fallout 5 and is collaborating with Obsidian Entertainment on a separate new Fallout project. The studio also revealed that remasters of Fallout 3 and Fallout: New Vegas are in development, and a Raven Rock expansion for Fallout 76 will serve as a Fallout 3 prequel. These announcements follow a strategic push by Xbox CEO Asha Sharma to accelerate the production of Fallout titles.

Todd Howard stated that The Elder Scrolls VI remains the studio's primary development focus, with the majority of the team currently assigned to the sequel. Both The Elder Scrolls VI and Fallout 5 are being developed using Creation Engine 3, a shared technology platform. To support these efforts, ZeniMax Online Studios will collaborate more closely with Bethesda. Additionally, Starfield will receive new content updates through 2027, and a Fallout 30th anniversary event is planned for October 23, 2027, in Washington, D.C.

These developmental milestones arrive during a period of significant instability at Microsoft's gaming division. The company has implemented 3,200 layoffs across its studios, including 379 cuts at Bethesda and ZeniMax in Maryland, with 1,600 more expected over the next year. Former employees have raised concerns that these cuts may lead to project delays and increased crunch for the remaining staff.


Reported across 12 outlets
Actors
Bethesda Game StudiosTodd HowardObsidian EntertainmentMicrosoftAsha SharmaMatt Booty

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