Microsoft’s Cruel Treatment of Zenimax Online Studios: A Tale of Two Layoffs


Source: https://www.pcgamer.com/author/harvey-randall/ / cdn.mos.cms.futurecdn.net

The Elder Scrolls Online’s Devs Deserve Better

This week, the gaming world was left reeling as news broke of another massive layoff at Zenimax Online Studios (ZOS), the developers behind The Elder Scrolls Online. The move comes on the heels of a previous layoff in 2025, which saw thousands of employees, including those at ZOS, lose their jobs. The situation has left many in the gaming community feeling frustrated, confused, and concerned for the future of the beloved MMO.

Microsoft's Cruel Treatment of Zenimax Online Studios: A Tale of Two Layoffs
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For those who may not be aware, The Elder Scrolls Online has been a stalwart in the gaming world for years, bringing in over $2 billion in revenue since its launch in 2014. The game has a dedicated player base and has been steadily improving with each new update. However, despite its success, the studio has been hit with a series of setbacks, including the cancellation of Project Blackbird, a highly-anticipated MMO that was in development for over half a decade.

Microsoft's Cruel Treatment of Zenimax Online Studios: A Tale of Two Layoffs
Source: cdn.mos.cms.futurecdn.net

But it’s not just the cancellation of Project Blackbird that has left fans reeling. The recent layoffs have left many feeling like the studio is being unfairly targeted by Microsoft. The decision to lay off 213 employees, including many who have been with the studio for years, has been met with widespread criticism from the gaming community. Many are questioning why the studio, which has consistently delivered high-quality content and brought in significant revenue for Microsoft, is being treated in such a way.

Microsoft's Cruel Treatment of Zenimax Online Studios: A Tale of Two Layoffs
Source: cdn.mos.cms.futurecdn.net

According to an interview with executive producer Susan Kath, the team at ZOS had been working tirelessly to turn the game around, implementing a new seasonal model and reworks to address long-held quality-of-life complaints. The game was finally starting to gain momentum, with players returning and new players joining the community. However, all of this progress was undone when Microsoft decided to lay off a significant portion of the studio’s staff.

But why is this happening? Is it simply a case of Microsoft trying to cut costs and streamline its operations, or is there something more sinister at play? The answer, much like the future of The Elder Scrolls Online, remains uncertain.

One thing is clear, however: the treatment of Zenimax Online Studios by Microsoft is nothing short of cruel and short-sighted. The studio has been a consistent performer, bringing in significant revenue and delivering high-quality content to the gaming community. It’s time for Microsoft to take a closer look at its priorities and consider the long-term implications of its actions.