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"Personally very difficult, and very difficult for our teams." —Bethesda's Todd Howard discusses Microsoft's deep Xbox cuts, and finding optimism for the industry's future 48%
By Jez Corden77%
7/18/2026, 10:22:49 AM
BS Summary: This article contains 26 faulty reasoning types, including Optimism Bias, Hasty Generalization, and Framing Effect, with Availability Heuristic as the most egregious example at 16.5% saturation with 139 hits. Analysis detected 1,209 faulty-reasoning hits from 840 analyzed words, generating a BS Score of 49.3% and a BS Rank of 48% (9,239 of 17,596 articles). This article is better (less manipulative) than 52.50% of the article peer group.
"Personally very difficult, and very difficult for our teams." —Bethesda's Todd Howard discusses Microsoft's deep Xbox cuts, and finding optimism for the industry's future
Today, Bethesda moved to reassure fans that its upcoming games, Fallout 5 and Elder Scrolls VI, are still trucking along.
Microsoft's absolutely massive cuts to its Xbox division have left fans wondering if the developers left are enough to even reproduce the kind of quality we've come to expect at the AAA level.
DOOM studio id Software sent a note to fans yesterday on the topic, and now Bethesda has followed up with its own.
Bethesda said that it's still working on Fallout 5 and The Elder Scrolls VI, alongside new content for Starfield.
The firm also revealed that Obsidian's Fallout project has been greenlit and that fans of Fallout 76 and The Elder Scrolls Online can also expect new content in the coming months.
I got a chance to speak to studio director Todd Howard about how Bethesda is navigating this unprecedented time in the games industry, and how the studio hopes to show up in the future.
"Very difficult, very difficult for our teams."
Fallout is arguably the most recognizable game this side of Grand Theft Auto and Minecraft now, thanks to the TV show.
(Image credit: Bethesda Softworks) I asked Todd Howard how the studio is doing, given Xbox's cuts.
Many Bethesda, Obsidian, id Software, and other veterans from across the Xboxosphere were let go in the past couple of weeks, alarming fans and industry insiders alike.
"I've been doing this a long time, whenever you've worked with people for, in some cases, many decades, and they're no longer here, that's really personally very difficult, and very difficult for our teams."
Howard called back to other difficult periods in Bethesda's tenure, noting its struggle to land a big hit in the 90s before Morrowind.
And also before the Xbox acquisition, where Bethesda came under pressure to produce mobile games and multiplayer service titles as tastes changed.
"If I think back, and people hear me say this internally, Bethesda is turning 40 this year.
There have been difficult periods, I look at like Bethesda 1.0 from kind of 86 to 99.
I was there for that.
We had to change who we were and how we did some things then.
And then we kind of became ZeniMax and did a bunch of things, and then we had to change again in 2016.
Moving to different studios ... how do we support these franchises?
"I think we're at another change moment for how we support each other, and what we do with these games and for our fans."
Finding optimism in an uncertain games industry
Todd Howard has been stewarding Bethesda since the mid 90s.
(Image credit: Christian Petersen/Getty Images) I asked Todd Howard how he stays optimistic given the way the game industry is shifting.
More and more younger users are choosing Roblox over traditional gaming options, for example, and big companies have come under increasing pressure to find megahits to stay afloat in the face of inflation, tariffs, the memory crisis, and other issues.
"The wider industry, this is not an Xbox comment, really.
You know, you see it going on across the gaming industry," Todd explained.
"So it's a wider industry thing — level setting, figuring out how some things are going to work in the future."
"If I zoom out from the video game industry, I look at who was nominated for Game of the Year last year.
As someone in the industry, I was so proud of that list, and what it says about what's being created, and the creativity.
There were periods of times where a lot of the games were kind of getting samey.
You worry things like, 'will adventure games ever have a home in the future, or this, or that, will this type of game finds success?'
And so on.
And so from kind of a creative standpoint, as far as the content that's being made out there.
As a player, it's been really good."
Todd Howard said that he generally doesn't use social media, but does say he reads commentary on Reddit to get the lay of the land.
He said that seeing the quality of the work his teams are putting together drives his optimism, as Bethesda looks ahead to Fallout 5, The Elder Scrolls VI, and beyond.
"I think I have the benefit of being able to work [in the games industry], I see the work we're doing.
So, I get to be there with the team and see the passion, see us channelling how we do better every week.
Crafting games that we absolutely love.
It's easy for me to be optimistic when I when I look at the work."
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