I have no idea how they’ll continue”: Bethesda dev is worried Xbox layoffs could end Fallout 76 updates without help from “an external studio

Developer July 9, 2026No Comments

Though it launched to scathing criticism and widespread controversy in late 2018 due to lackluster content offerings and severe technical issues, Fallout 76 — Bethesda Game Studios’ multiplayer-focused MMO-lite take on the post-apocalyptic RPG series — grew to become fairly popular over time, with the title still enjoying regular content updates and a healthy community eight years later.

In the wake of this week’s massive wave of 3,200 Xbox layoffs and four studio divestments, however, there are fears that support for the long-running Appalachian adventure may soon come to an end. Teams under the ZeniMax and Bethesda umbrella have been affected “significantly,” including the game’s steward, Bethesda Game Studios.

It’s been reported that over 50 staffers have been cut from Bethesda across its headquarters in Rockville, Maryland and its office in Dallas, Texas — a reduction in force that has The Elder Scrolls 6 devs fearing crunch on and delays of the long-awaited RPG moving forward. Some also worry that a significant amount of time will have to be spent training contractors to use Bethesda’s proprietary tools like the Creation Engine.

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Notably, though, one Bethesda developer commented to IGN that they “have no idea how they’ll continue updating Fallout 76 without hiring an external studio,” which suggests development of the experimental Fallout title could end at some point in the near future.

Fallout 76 has enjoyed eight years of steady patches and content updates, but support for the game may now be at risk after Microsoft’s Xbox layoffs hit Bethesda.

Another possibility is that Fallout 76 support will ultimately continue, but with its updates and patches being reduced in size and cadence. This appears to be what’s happening with The Elder Scrolls Online and ZeniMax Online Studios; content roadmaps for that game are “shifting” after its developer suffered over 200 cuts this week.

We may also see external support for Fallout 76 come, as in a letter sent to staff, Bethesda president Jill Braff emphasized the need for the studio to better support its “strongest franchises” — echoing recent sentiment from Xbox’s CEO Asha Sharma that it needs to “move faster” with core IPs like Fallout.

Ending support for the most recent game in the series would arguably go against that goal — especially while the extremely popular Fallout TV show is bringing countless new eyes to the property. With that said, Fallout 76 is now eight years old and isn’t massively popular, and with Obsidian now making a new Fallout game, Microsoft may not see much value in continuing to invest resources in the title.

In the end, it’s impossible to say what will happen with Fallout 76 moving forward until we hear something official from Microsoft, Xbox, or Bethesda. Based on the aforementioned comment from a developer, though, I do think it’s likely that the game’s live-service development will change in some way.

Whether it ends up stopping completely or just slowing down remains to be seen, but I can’t imagine that this week’s cuts won’t be reflected in Fallout 76’s update cadence somehow.

In the wake of Microsoft’s Xbox layoffs, should support for Fallout 76 continue? Or do you think Bethesda should move on from the game? Let me know in the comments, and in the above poll.