Today, Bethesda offered a big update on how the studio is mapping its future.

Xbox's massive cuts have left many of its subsidiaries reeling, with fans worried that Microsoft may have cut the legs off many of the industry's most beloved franchises. id Software sought to reassure fans on the topic this week, and now Bethesda is also doing its bit on top.

Bethesda just confirmed in a big note that Elder Scrolls VI is coming along nicely and hitting milestones, Starfield will continue to get new content, and finally, Fallout is getting a ton of new projects. Fallout 5 is in pre-production, Obsidian is returning with its own Fallout spin-off, and Fallout 3 and New Vegas are getting remakes, confirming our previous reporting.

One piece of news that might go under the radar here a bit is on Creation Engine 3, which Bethesda is developing specifically for Elder Scrolls VI and Fallout 5. I recently caught up with Todd Howard to learn a bit more about how the studio is positioning Creation Engine 3, Creation Club, and how it's becoming an increasingly critical part of Bethesda's future.

"I can't say enough about our tech team. It's just incredible."

Creation Engine has been a bit controversial in some corners, with some gamers feeling it lacks the fidelity of engines like Unreal or the cinematic qualities of in-house engines like RE Engine.

Creation Engine has always been more of a sandbox play in my view, designed for extensibility first and foremost and rapid iteration on huge-scale worlds. It's also designed for modding at its core, with Creation Club members earning over $10 million in revenue since the platform's inception.

I caught up with Todd Howard recently to talk about a variety of topics, including how Creation Engine 3 is being leveraged in Fallout 5 and Elder Scrolls VI, and how he's thinking about the platform given the rise of Roblox and Minecraft's own platform-extensible features.

"When we build these worlds, it starts with the tech. A lot of people think engine, they think rendering, but there's so much more that goes into it from a tool side and a system side," Todd explains.

"For the kind of worlds that we want to build and also knowing that we were going to be doing Fallout 5, and just how do we do those simultaneously in a way where it's not start and stop. And we're really happy. I can't say enough about our tech team. It's just incredible. Our designers ask for so much crazy stuff, and our tech team finds a way to do it. And I think that's really defined our games where you feel like anything is possible."

I mentioned the stat Bethesda brought up: $10 million has been paid out to creators in the Creation Club program across games like Fallout 4 and Starfield. Given the rise of Roblox as a user-generated content juggernaut, I asked if these industry shifts have informed how Creation Engine 3 will show up.

"If you go back, something we've been super passionate about since we sort of started this run with Morrowind, I was adamant that I wanted the Elder Scrolls Construction Set to come with the game, like as a separate disc. And we've been doing it for decades. We have a creator group that have been doing it for decades, it's what's kept games like Skyrim alive after fifteen years.

It harkens back to when you played D&D and you can make your own adventures. That spirit of creation. It takes a lot of different flavors, so it's really about supporting all those different flavors. I think we're in an awesome spot with Creations, with verified creators, and they're getting that revenue. It has risen all boats, free modding too, with those things being more popular. You see people who maybe they were a hobbyist on the side now becoming a professional. The the content in there blows us away. They just do an incredible job. And for some, now this is their career, and that makes us ecstatic."

Could Creation Club and Creation Engine be another answer to Xbox's Roblox problem?

On the Xbox layoffs, Todd Howard lamented for friends who will no longer remain at the studio with visible hurt, but noted that the game industry more broadly is undergoing a massive shift. He called back to 2016, just before the Xbox acquisition, on Bethesda's sprint towards mobile and multiplayer as gamers seemed to be shifting away from single-player titles en masse.

That similar change now revolves around user-generated content in a lot of ways. Roblox is now bigger than Steam and PlayStation combined, as creators build out entire games and worlds and build entire businesses inside Roblox itself. Bethesda's Creation Club was a pioneer in that space to some degree, alongside Minecraft, giving the modding community ways to turn their hobbies and passions into careers that pay the bills.

It'll be interesting to see how Creation Engine 3 shows up in Fallout 5 and The Elder Scrolls VI, but we're probably going to be waiting a while to see how it all shakes out.

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Marvel's Wolverine has recently unleashed a new cinematic trailer, featuring an epic montage of the superhero Wolverine being awesome, killing bad guys while briefly getting into a tussle with his longtime nemesis, Sabretooth.

However, fans are hardly paying much positive attention to the game itself, as the comments section of the trailer on YouTube is overflowing with negative comments condemning Sony for killing off physical game discs for future PlayStation games.

Most of the comments are your typical outrage posts demanding that Sony reverse its decision to cancel game discs. However, a grand majority of them mock Sony for its actions using jokes like "Wolverine was really getting PHYSICAL in this trailer; he has such a DISCtinct presence".

The most hilarious of these comments is "Wolverine's treasured photograph shows the significance of physical media". This is a reference to a scene from the trailer showing a photo of Wolverine and someone they're close to burning to ashes.

This causes our hero to go nuts at the bad guys for destroying it, and fans took it as an unintentional piece of commentary on the dire state of physical media in the gaming industry and used it to clown on Sony relentlessly.

Xbox could and should figure out a way to offer an alternative

In recent days, it seems like Sony has gone mad with wanting to destroy physical media, what with closing down the PlayStation 3 and PSVita digital stores, delisting over 500 movies from UK customers with no refunds, and, most recently, making it harder and more expensive to purchase physical anime and manga via Crunchyroll.

I mean, if companies like KFC and Domino's Pizza are mocking Sony for killing off physical media, you know something's gone very wrong.

Now granted, it's very likely Xbox Helix will drop physical discs as well. However, Microsoft is working on a special disc-to-digital program called 'Positron' and there's a chance it might figure out a way to preserve disc-based games without forcing consumers to resort to piracy.

What's more, this turbulent backlash Sony is facing may give Xbox the first opportunity in probably decades to give PlayStation a one-up, providing gamers with a consumer-friendly alternative to Sony's dark future for digital media on PlayStation, if it plays its cards right.

Only time will tell what the future holds for Microsoft and Sony. Still, in the meantime, I'll be praying for Marvel's Wolverine to land on PC and perhaps Xbox someday (even though the odds of both are very unlikely) because it looks too awesome to be contained on a single platform.

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It's a little conspicuous that, in among all the strategy changes at Xbox thus far, new CEO Asha Sharma hasn't mentioned Xbox Game Pass all that much.

Inspired by the Netflix and Spotify era, Xbox built Game Pass, as an all-you-can-eat subscription service serving everything from AAA blockbusters to hidden indie gems. During its heyday, it was hailed as "the best value in gaming," and often times seemed too good to be true. Increasingly, it looks like it might be the case.

Xbox's huge cuts this past month have been driven in large part due to a decline in Game Pass revenue and a decline in Call of Duty, so I'm told. Last year's Black Ops 7 didn't resonate as dominantly as the franchise previously has, as strong competition from Battlefield 6 and Arc Raiders ate into its traditional user base. Call of Duty: Black Ops 7 still went on to sell monstrous amounts, but the operation is so vast and expensive, even small disruptions can have big consequences.

Indeed, the fact Call of Duty showed up in Xbox Game Pass disrupted the business model at both ends. Fewer people purchased Call of Duty outright, and the Game Pass price hike to pay for it led to an exodus of users over time, disrupting both business models quite heavily. There are various other factors, but that's the core of what went down, ultimately. As user behavior evolves, is Xbox Game Pass now having a net negative impact on Xbox's overall operation?

Bloomberg's Jason Schreier discussed sentiments I've also heard about Xbox Game Pass' impact on Microsoft's gaming studios, in no uncertain terms.

"There are a lot of people out there in studio leadership within Xbox who absolutely detest Game Pass," Schreier said on his Triple Click Podcast, "[They] think it has destroyed the value of their games, think it has taken away the value from all games in general and has been a detriment to the games industry in those people's view, because of how it devalues games."

I was curious what my own sources felt on the topic. Speaking to a former Xbox studio lead, they were pretty upfront about echoing what Schreier reported: "Giving games away for 'free' in Game Pass from day 1 sends a message to consumers that the games don't have inherent market value. It almost creates an assumption that these titles could not sell on their own," one said. "It felt like a race to zero."

I asked another former Xbox lead with intimate knowledge of the Game Pass strategy previously, who explained that the idea around the whole platform was to offer core games a stable revenue stream as many core users increasingly opt for free-to-play titles, or wait for deep cuts and sales, such as those often found on Steam.

They explained that Xbox has an engagement formula it uses to allocate profits from Xbox Game Pass back to studios. Although some studio figures I've spoken to feel that these accounting mechanisms aren't transparent, nor are they motivating for studios — whose bonuses have traditionally been tied to direct sales rather than oft-vague "engagement" metrics.

Circana Player Engagement Tracker US MAU charts for June 2026:- Meccha Chameleon debuted on top of the Steam US monthly active user chart- Destiny 2 jumped to 5th from 32nd in May on Steam- Where Winds Meet launched in top 10 on Xbox with Game Pass release

— @matpiscatella.bsky.social (@matpiscatella.bsky.social.bsky.social) 2026-07-19T13:46:40.715Z

Despite Xbox Game Pass, it is true that the top 10 most-played charts are generally dominated by the same handful of free-to-play titles, or service titles, that monetize primarily via bite-sized microtransactions. Xbox Game Pass was designed to encourage users who are perhaps less inclined to spent $70 on a full priced title to try something outside of their typical free-to-play habits.

There was a time early in Xbox Game Pass' life where the instant-audience Game Pass would grant helped games achieve free-to-play-like virality, actually boosting retail sales. As Xbox Game Pass habits become embedded and expectations become set, it seems the positive impacts of Xbox Game Pass become increasingly difficult to quantify.

It's true that Xbox Game Pass by itself is driving billions in revenue for Microsoft, and consumers obviously love it. Many independent developers have remarked on funds from Xbox Game Pass as being a financial lifeline, too. But, Xbox is not exactly transparent about how the profits are allocated to first-party studios, even internally it seems from those I've spoken to on the topic.

If Game Pass is subsidizing studios over retail sales, the harm of any potential decline seems to be distributed across the board, even across studios and teams that might've otherwise had good years in a traditionalist retail model. That is speculative, though, given how opaque the Xbox Game Pass business model is. We don't have a crystal ball to deduce how well a game might've performed outside of Game Pass, as well.

Jason Schreier speculates that Microsoft might move away from its day one Xbox Game Pass model. Microsoft hasn't signalled intent to do that (yet), but the fact that it will no longer include the latest Call of Duty titles in the service could be a hint.

I suspect what we might get instead is some sort of "build your own" Xbox Game Pass, where users can pay a premium for titles like Call of Duty, Forza Horizon, or even things like World of Warcraft's or Minecraft's subscriptions on an à la carte basis. Microsoft's Xbox margins are being crushed by a variety of crises, whether it's tariffs, supply chain problems, geopolitical issues, or the on-going memory crisis. Microsoft has also seen interest in its Xbox hardware reach unprecedented declines, owing to the fact it pivoted away from any form of exclusive content.

Xbox Game Pass has remained a bright spot in Microsoft's overall gaming offering with consumers. Even as exclusive games failed to materialize, games got cancelled, and price hikes bit, Xbox fans and customers could usually point to Xbox Game Pass as a reason to stick with the platform. That changed when Microsoft hiked its price to $30 last year to offset Call of Duty potential losses. Without a strong line-up of exclusive titles, Microsoft is likely cautious to do harm to one of the only unique selling points Xbox Series X|S consoles have left.

RELATED: Xbox's Todd Howard on the future of Fallout, Starfield, and The Elder Scrolls

Right now I would imagine Microsoft is looking at every lever it can pull to boost up Xbox's margins. It has angled for devastating and potentially self-defeating layoffs in the short term. We've seen price hikes on hardware. I suspect addressing ways to tighten up the Xbox Game Pass model might be next.

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It’s hard to really put into words how I feel about Bungie right now. As a lifelong Halo fan, the studio will always have a special place in my heart, but the way it has operated since leaving Xbox has been less than ideal and, honestly, devastating to watch as a fan.

For those out of the loop, Bungie recently shifted its focus away from Destiny in favor of Marathon. Unfortunately, that decision doesn’t appear to be paying off. Marathon recently peaked at around 6,000 concurrent players on Steam, while Destiny 2 reached almost 60,000 during the same period, around 10 times more than Marathon.

It's also worth mentioning that Marathon isn't even within the top 100 most played games on Xbox, behind titles like Gears of War 2 and Fable 3, both of which are Xbox 360 games.

Don’t worry, though, Destiny fans; Bungie has a solution. It’s adding a limited-time PvE mode to Marathon for just two weeks. I’m sure that’ll go over well. In all seriousness, though, I don’t want to make fun of Bungie too much. What’s happened to the studio, especially after the recent layoffs, which are genuinely sad to see.

I really do hope Bungie lands on its feet, whatever that future looks like. Still, the studio’s direction feels increasingly uncertain, and it’s hard not to wonder what happens next for one of gaming’s most iconic developers. It’s not difficult to imagine a future where Bungie ends up as more of a support studio, especially as its valuation continues to decline from the $3.6 billion Sony paid to acquire it.

For context, Sony not too long ago recorded an impairment loss of roughly $766 million against Bungie. In simple terms, that’s an acknowledgment that the studio is now considered less valuable than when Sony acquired it for $3.6 billion. Whether that figure grows in future earnings remains to be seen, but given Bungie’s recent struggles, I wouldn’t be surprised if it did.

Mind you, this is all without mentioning that Marathon's game director, Joseph Ziegler, has just left Bungie. Although the torch has been passed on, his departure is yet another worrying sign for Marathon's future.

Let me know how you feel about Bungie, the current state of Marathon, and where you think the studio goes from here in the comments below. Also, be sure to take part in our poll!

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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."

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

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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Zenless Zone Zero, the once-PlayStation-exclusive action game by the creators of Genshin Impact, has announced it will be making its way onto Xbox on PC with cross-platform Xbox Play Anywhere support between the Xbox Series X|S and Xbox Cloud Gaming on July 29, 2026.

In addition, the game will be receiving a massive Version 3.1 content update titled "The Long Goodbye" on the same day it launches on Xbox on PC.

This update will include new questlines for its storyline and a new playable character called Remielle Dan, an S-Rank Anomaly Agent who is the very first Lumiflux attribute agent who can adapt her damage output depending on her team composition.

In addition, the S-Rank Ice Attack Agent Sigrid will also become playable in this update.

As part of Zenless Zone Zero's 2nd anniversary celebrations, the game will allow players to select and obtain one of five S-Rank agents (Jane, Soldier 0/Anby, Hugo, Trigger, or Lucia) and receive their corresponding exclusive W-Engine weapons.

On top of that, this update will introduce a new game mode called Enigma of the Labyrinth: Operation Bagel, 1,600 Polychrome login rewards, and up to 20 signal searches to find across the full game.

With Zenless Zone Zero now available on Xbox on PC, Xbox players will now have even more ways to enjoy the rich story, beloved characters, and addictive combat of this popular gacha action game on any compatible Xbox device, no matter where they are.

Zenless Zone Zero is also available on iOS and Android mobile devices, PlayStation 5, and PC via Epic Games Store and the Hoyoverse, with full cross-play support between each system and the Xbox platforms.

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Sim Update 6 for Microsoft Flight Simulator 2024 is on its way, and following the recent first beta release, there's now a newer one to try out with more new features.

In the Sim Update 6 1.8.8.0 beta there are two pieces of new content to take a look at, including the much-anticipated return of Bush Trips from Flight Simulator 2020.

It's not all of them at this point, but it sounds like a good chunk are available to try out before the public release, per the patch notes.

"As announced during FlightSimExpo 2026, bush trips are coming to MSFS 2024 and are now accessible in the Sim Update 6 Beta from the Activities menu. We have added a large amount of the bush trips from MSFS 2020 already and more will be added in the coming days."

The other fresh content concerns lighting, one of the already promised big upgrades for Sim Update 6. Generic airport lighting upgrades were made in the previous beta, while this latest one adds MastLights to those same generic airports, improving the illumination at parking spots.

This is on top of the features that came in the first Sim Update 6 beta, including DLSS 4.5, FSR 4, and the ability to skip walkarounds in Free Flight mode.

If you want to try the new beta for yourself, how you get in depends on where you're playing. Sign up to be a Flight Simulator Insider first, and then flights are managed through the XBOX Insider Hub app on console or PC.

Steam betas are managed through the game's Properties menu, and PS5 players can download the beta via the PlayStation Store.

There's no release date yet set for the public version of Sim Update 6, but the latest roadmap shows a July or August timeframe. So it's not too far away.

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Today, Bethesda offered an update on its studio, following Xbox's brutal cuts across its games business.

Microsoft is laying off thousands of gaming staffers and contractors in its gaming operation, as bets on Xbox Game Pass, Call of Duty, and multi-platform games didn't pan out. To that end, many fans have been worrying that the future is bleak for games like Fallout and The Elder Scrolls, as ZeniMax seemed disproportionately targeted by management.

In a note shared by Bethesda today, the firm not only confirmed that The Elder Scrolls VI is coming along nicely, but also that Starfield and Fallout will continue to be built upon. Not only that, but Fallout 5 is now in pre-production, and Fallout 3 and New Vegas will get Oblivion-style remakes, confirming my previous reporting.

Fans will also be excited to learn that Obsidian's long-rumored Fallout project has now been fully greenlit, and is being developed in collaboration with Bethesda.

"The wasteland continues to expand as we team up once again with our longtime friends at Obsidian Entertainment," Bethesda remarked. "We're happy to confirm they're working with us on a new Fallout project. We'll have more to share in the future."

Details on the Obsidian Fallout project have been rumored for a while. In my own research, I learned that Obsidian had been building a prototype on the side for as long as two years, pending collaboration with Bethesda.

Update (July 17, 2026): To clarify, sources felt that this project (which was not officially Fallout by name) was very Fallout-y in nature, to the point where there were debates at the upper levels of Xbox Games Studios about whether or not it should be made in Unreal or Creation Engine. I was told that Obsidian's previous project wasn't officially Fallout, at least in part because Todd Howard wanted to be involved in any potential formal Obsidian-Bethesda collaboration on the IP. It purportedly wasn't possible at the time due to the various on-going commitments to the Fallout TV show, Elder Scrolls 6, and Starfield. It does sound like the extent to which the previous incubated apocalypse-style franchise was potentially "Fallout-adjacent" amounts to a matter of perspective to onlookers, but Obsidian is obviously very cognizant of fans' long-time hopes for them to return to the genre.

With Xbox's CEO Asha Sharma signalling intent to speed up production on Fallout titles, it seemed increasingly inevitable that more spin-off projects like New Vegas and 76 would emerge.

I caught up with Todd Howard in an exclusive interview yesterday to learn more about the plans, and talk about the "mythology" fans often curate surrounding some kind of rivalry between Obsidian and Bethesda.

"I appreciate some of the fan chatter, but behind the scenes, there's a huge amount of like mutual respect [between us]. We're always wondering if we could find a way to work together in the right way. And when those things come up, I think I definitely look at the franchise all up, as you see in the note, everything that's kind of happening with Fallout."

"You sort of say, is there a way or a window or a pocket where we could do something together that really, really made sense? And so we're super excited about the opportunity, working together."

I asked about the possibility of other spin-offs, given that under Xbox, you now have Fallout legends like Tim Cain and Brian Fargo of InXile all under one roof. Could we see a return to an isometric-style tactical CRPG Fallout, given the success of Baldur's Gate 3 more recently? Todd Howard's response, 'never say never.'

"Sometimes you find your way there and sometimes you don't, or you do it later. It takes time. You mentioned the Fallout show. And that was a 10-year journey. As a caretaker of these things, the number one job is to make sure we serve the franchise as best we can."

Todd Howard couldn't give us more details on what Obsidian's Fallout might look like, as it's still early on. I've been investigating rumors that it would be built in Unreal Engine, although given Bethesda's focus on growing Creation Club, perhaps that could change. I asked whether or not it would be multiplatform or Xbox exclusive on console, but Todd Howard said again, they'll announce those things "when the time is right."

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Good news often comes in threes, and that could be true for fans of Starfield, The Elder Scrolls, and Fallout today.

Just now, Xbox studio Bethesda offered a massive update on its plans for its big three properties, and we caught up with studio director, Todd Howard, to learn more context about what fans can expect.

"We love making these worlds as much as you love playing in them," the note reads. "Today, we want to share what's next for Bethesda Game Studios and what you can expect from us in the years ahead."

For forty years, we've built games that have entertained almost half a billion players. More than just games, these are worlds. Worlds for you to explore, shape, and make your own. Worlds we return to together. That's what's driving us forward."

Bethesda said that it's making the investments to bring its core teams "closer together" with a view of building titles faster, provide them support for longer, for "decades to come."

Here's an overview of what was announced.

• On Fallout: Bethesda confirmed that it is working towards Fallout 5, which is now in pre-production.
• Bethesda confirmed my previous reporting that Fallout 3 and Fallout New Vegas will get full remakes in the future, but didn't announce dates.
• Bethesda also confirmed that Obsidian is returning to Fallout with its very own spin-off game, and said more info would come in the future.
• Fallout 76 will get a "huge" new DLC called Raven Rock, which will serve as a prequel to Fallout 3.
• Starfield is slated for more content, with a Starborn DLC on the horizon, and more tools and features to boost Creation Club content. Bethesda says Starfield remains "an important part of our future."
• Elder Scrolls 6 is progressing nicely, and Todd says that the studio is "where they want to be" on the game's development timeline — but don't expect it any time soon.
• Elder Scrolls Online will continue to get new seasons, and Zenimax Online Studios will be more directly integrated into Bethesda proper to improve collaboration.
• Elder Scrolls VI is Bethesda's current primary focus, "we're where we planned to be, loving how it looks, and playing every day."
• A big part of the wait revolves around Creation Engine 3, which Bethesda has been developing specifically to boost simultaneous franchise development and improve Creation Club tooling.

Todd Howard spoke to us about the Xbox cuts, huge respect for Obsidian, and video game industry challenges

When I got the call that I'd be speaking to Todd Howard, I admit I was a bit floored. I've been doing this for over a decade at this point, and never in my wildest dreams did I imagine it would lead to an on-the-record chat with one of gaming's most prominent.

Todd Howard has been stewarding Bethesda franchises since 1994, but solidified his place in gaming legend with the release of Elder Scrolls III: Morrowind, back in 2000. The game industry looks wildly different now than it did back then, but Bethesda has always managed to adapt to changing times.

Top of mind for me, and I suspect most of the Xbox faithful right now is Microsoft's huge cuts to the gaming operation, which seem to have disproportionately fell into ZeniMax's lap. I asked Howard how he and the team was doing, given what's going on.

"Great question," Howard says, looking visibly sorrowful. "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 difficult for our teams."

Howard referred to previously difficult times in Bethesda history. During the 90s, Bethesda struggled to make it into the big time, and just before the firm was acquired by Microsoft, it had struggled out a variety of multiplayer-adjacent and mobile titles in attempts to join the "service game" gold rush, to mixed success.

"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? And 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."

Speaking of fans, I couldn't help but mention Obsidian's return to Fallout. Obsidian made Fallout New Vegas, which is among the most beloved entries in the storied Fallout canon. Fans love it for its reactive world and true choice and consequence, something many feel Fallout 4 pulled back on. I asked Todd Howard how the collaboration with Obsidian came about, and what he thinks of the online mythology surrounding a purported rivalry.

"I appreciate some of the fan chatter, but behind the scenes, there's a huge amount of like mutual respect [between Bethesda and Obsidian]. We're always kind of wondering if we could find a way to work together in the right way. And when those things come up, I think I definitely look at the franchise all up, as you see in the note, everything that's kind of happening with Fallout."

"You sort of say, is there a way or a window or a pocket where we could do something together that really, really made sense? And so we're super excited about the opportunity, working together."

Todd remarked about how Obsidian's work flow mirrors Bethesda's, with a core team that have been together for decades. I noted how there's so much legendary Fallout alumni at Xbox now, with Tim Cain at Obsidian, and Brian Fargo at InXile. I asked if we could see even more projects emerge in the future, like an isometric Fallout 1 remake from InXile, for example. Howard remarked that Xbox teams are "pretty in sync," and they've seen and heard every idea for Fallout spin-offs.

"Sometimes you find your way there and sometimes you don't, or you do it later. It takes time. You mentioned the Fallout show. And that was a 10-year journey. As a caretaker of these things, the number one job is to make sure we serve the franchise as best we can."

The future hold for Starfield, Fallout, and Elder Scrolls fans

I didn't have a ton of time with Todd Howard (albeit hugely appreciated), and many of my questions were simply too far afield for answers.

I asked Todd Howard if The Elder Scrolls VI or Fallout 5 would be going exclusive to Xbox, given Xbox CEO Asha Sharma's mandate to grow the Xbox hardware ecosystem. He said it was too early to comment. I asked if we could get a timeline for Elder Scrolls VI launch window, but again, it sounded like the game is still too far away to put a landing strip on paper. I asked what engine Obsidian's Fallout game would be using (Unreal or Creation Engine?), but he said more would be revealed at a later date.

I think ultimately, today, Bethesda really wanted to reassure its fans that Xbox's cuts haven't decimated the studio. We've seen other Xbox studios like id Software put out statements on the topic, for example, as rumors run rife, and long-tenured staff with decades of experience and millions of dollars in sales to their names get ousted.

With the memory crisis ongoing, the AI build-out harming Microsoft's financials, and the saturation of the attention economy, it's a tough time for gaming. There's more content than ever, but also more competition than ever. It sounds as though Bethesda is pouring everything it can into making The Elder Scrolls VI another landmark hit for the studio, but we might still be waiting more than a hot minute to get our hands on it.

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Id Software has been through the wringer this month, as it was one of the many casualties of Xbox's big "reset" that laid off 3,200 game devs, which caused it to lose 136 of its workforce.

id Software quickly responded by saying that despite its loss of staff, it still has the essential crew needed to make more DOOM games and that its team is roughly the same size as it was when it made DOOM (2016).

Plenty of fans weren't entirely convinced by this statement, so id Software's Studio Head, Hugo Martin, decided to reassure the fanbase directly during a YouTube livestream playthrough of DOOM: The Dark Ages | Livestream hosted by id Software's Senior Community Lead, Joshua Boyle.

During this livestream, Hugo Martin stated that “There have been reports that we've been nerfed into the ground and gutted, and we are not; we have 50 people, and that's not true. We're the size we were when we made Doom 2016, and IDTech is very much alive and well."

Hugo continues, "You have to understand, we have idTech engineers both in Frankfurt and, you know, at Machine Games; we collaborate quite a bit. So, you know, the IDTech is there, the Doom team is here, and we're excited to work on; to share with you guys more of what we're working on in the future when it is appropriate and approved.”

Windows Central's take

Reactions to id Software's layoffs have been universally reviled by the gaming community. Fans have sent harsh criticisms to Microsoft via its Player Voice Feedback platform (while being spurned by Bethesda's Union), and one former id Software developer even left a scathing message, saying, "I sure hope the sixth round of layoffs is worth our pain and your pleasure."

One of the few neutral reactions to this situation was from John Carmack, one of the founders of id Software, who said, "I’m saddened, but I can’t muster anger or outrage over it, he continued, "To continue being produced long term, games need to succeed, not just be beloved. Games are competing with every other option for spending your leisure time and money, and the competition is brutal."

Personally speaking, I'll believe id Software's statement that it is "not gutted and nerfed" when I see what their next game is and if the quality of it suffers from the downsized manpower it suffered thanks to Microsoft.

The only good news from this mess is that at least DOOM: The Dark Ages | Revelation's quality hasn't suffered from these layoffs because this DLC expansion is enjoying rave reviews from critics and fans for refreshing it with DOOM: Eternal's faster-paced gunplay while adding new weapons, enemies, and more features.

But will id Software's future projects maintain high standards of quality now that its team has been downsized? Will Microsoft incur even more layoffs to the point where id Software will be forced to close its doors? Only time will tell, and we'll be there to find out and report it.

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Content creator Sean Dubs TV, who regularly covers Halo, recently took a closer look at a Microsoft trademark filed back in 2021 for Halo: The Endless.

At the time, many assumed it was connected to Halo Infinite, possibly as the title of a campaign expansion, but that never materialized. What's particularly interesting is that Microsoft continued fighting to secure the trademark until April 2026, suggesting it may have been intended for something else entirely.

For those unfamiliar with Halo lore, the Endless are a mysterious species introduced in Halo Infinite. While very little is known about them, some fans have speculated they're connected to the Precursors, the ancient race said to have created all life in the Halo universe.

The timing is what makes this particularly interesting. Microsoft formally abandoned the trademark just weeks before reports emerged that Halo Studios had canceled their multiplayer project, Project Ekur.

That doesn't prove the events are related, but it certainly raises questions about whether Halo: The Endless was once part of an earlier vision for the franchise that has since been left behind.

Sean Dubs TV also uncovered a little-known interview with Halo Studios head Pierre Hintze, in which he reflects on lessons learned from previous Halo games. Speaking about Halo 5, Hintze said:

“We chose to go a different direction when it comes to the narrative where Master Chief was not the main protagonist and the backlash was imminent, and for us there are certain things which we have to deliver in terms of the expectation of our players.”

Personally, I think Halo Studios may be taking away the wrong lesson from Halo 5. It wasn't simply that players wanted more Master Chief, but that the game was marketed around him only to shift focus to Spartan Locke.

Bungie also proved with Halo 3: ODST and Halo: Reach, while Ensemble Studios did the same with Halo Wars, that Halo stories can succeed without Master Chief when expectations are set appropriately.

Hintze also spoke about the kinds of experiences he believes will become more important in gaming over the coming years, saying:

“I think we're going to see deeper experiences where the line between playing with and against humans becomes more blurred... Yes, it is incredibly rewarding if you go into a first person shooter and play one v one and win. But it is also incredibly rewarding if you are completing an objective or completing a raid in an MMO and you see the solidarity and the help and support we can lend each other.”

It's worth stressing that Hintze was answering a broader question about the future of gaming, not Halo specifically, and he never suggests Halo is becoming an MMO.

Even so, the comments have attracted attention online, and when combined with Microsoft's decision to abandon the Halo: The Endless trademark, they've left fans, myself included, wondering exactly what direction Halo Studios is now taking.

Halo: Campaign Evolved releases soon, but I'm even more eager to find out what Halo Studios has planned for the future of the franchise. I've always felt Halo is massively underutilized, and with Xbox now looking to invest more heavily in its biggest franchises, I'm hoping we finally see the series branch out into more genres. Who knows, maybe even the canceled Mega Bloks game could make a return one day.

Let me know what you'd like to see from Halo in the comments, and as always, be sure to take part in our poll!

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My hype for Final Fantasy Resonance continues to build as Square Enix has released a new gameplay trailer showcasing more of its HD-2D pixel art style in its cinematic cutscenes, environments, and turn-based combat system.

I was already sold on the game for bringing back turn-based combat to the Final Fantasy franchise, but this trailer has cemented it on my wishlist.

It's a montage of various scenes from Final Fantasy Resonance. These include exploring towns and a classic open-world map seen in old-school Final Fantasy games from the NES to PS1 era, characters interacting with each other, and scenes of the turn-based combat system where the heroes summon spirits of previous Final Fantasy protagonists to aid them in battle.

All the while, it's all presented in an absolutely beautiful HD-2D pixel art style (a blend of 2D animated character sprites set against 3D animated backgrounds) that was made popular by Square Enix's Octopath Traveler series.

Windows Central's take

As someone who grew up playing 16-bit pixel-art games on the Super Nintendo and Sega Mega Drive and is a fan of other HD-2D games like Live a Live Remake and Dragon Quest 3 Remake, I absolutely adore this game's pixel-art.

It looks so clean, vibrant, and detailed, and superbly animated to boot. Not to mention, it gives the characters so much personality with their exaggerated, intimidating, or silly pixel-art facial expressions depending on the situation.

I honestly prefer this art style to recent mainline 3D Final Fantasy games, which tried to blend realistic graphics with fantastical aesthetics, with mixed results that sometimes either dull the contrast of the environments to make it look boringly dreary (e.g., Final Fantasy XVI) or make characters look bland (or, in some worse cases, look like lifeless dolls, like in Final Fantasy XIII).

In fact, it looks so good that it makes me wish Square Enix used this art style for its modern remaster of Final Fantasy Tactics. Not that it's needed, as its PS1-era graphics have held up extremely well, but I would've loved to see what it would've looked like with HD-2D pixel art and modern animations for its over-the-top special attacks and summon spells.

Though I guess Square Enix wanted to play it safe with Final Fantasy Tactics since it's such a beloved game in the franchise, and they're probably using Final Fantasy Resonance to test the waters to see if people would want more HD-2D Final Fantasy games if it does well; I know I certainly do (here's hoping for an HD-2D remake of Final Fantasy Tactics Advance).

Either way, I can't wait to see more of Final Fantasy Resonance (or hopefully, a playable demo) before it releases on October 22, 2026, for Xbox Series X|S, PlayStation 5, Nintendo Switch 1 & 2, PC via Steam.

What do you think of Final Fantasy Resonance? Do you think its turn-based combat looks cool, or do you prefer Final Fantasy games with real-time combat, like the Final Fantasy VII Remake series?

If you have any thoughts on the matter, please let us know through the poll below, the comments section, or our Reddit page.

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As I sit here typing this, our entire content management system is buckling under the load that is Xbox's Ultimate Game Sale 2026.

Microsoft often runs sales events during the summer, lining up with Steam and other platforms to drive interest during a time that is typically light for gaming. People are actually going outside and touching grass I'm told, during the summer months. It couldn't be me, though.

Indeed, I've already spent over $100 on this week's sales event, which is scheduled to run until July 29th, so you have plenty of time.

The event has a ton of highly popular titles deeply discounted. Little Nightmares 3, the entire Final Fantasy franchise, Resident Evil games, Xbox first party titles, indie heroes like Darkest Dungeon and Mutant Year Zero, heavy hitters like Death Stranding, Warhammer 40K: Rogue Trader, Cronos: The New Dawn and Silent Hill 2. There's a ton of hidden console gems here too, like Mandragora: Whispers of the Witch Tree, Void Train, Wartales, Signalis, and many, many more.

There's everything from Xbox Series X|S, to Xbox One, to back compat Xbox 360 games, to Xbox Play Anywhere PC games, Xbox Ally-optimized games, and everything in between.

If you jump into the sale, do let us know what you pick up in the comments. Below is a list of all the main games we could find, and their associated discounts.