Xbox has officially unveiled its long-term plans for Bethesda and ZeniMax as part of a major restructuring of its gaming division. The company confirmed that Double Fine and Compulsion Games will become independent studios, while Ninja Theory and Undead Labs have been sold, with development of Senua and State of Decay 3 continuing to receive funding. Meanwhile, Arkane Lyon is reviewing its future in cooperation with the French government.
The changes are part of a broader overhaul of ZeniMax Development Studios, which includes Bethesda, ZeniMax Online Studios, id Software, MachineGames, and Arkane Lyon.
Xbox CEO Asha Sharma previously stated that the company wants to focus on its biggest franchises, including Halo, Call of Duty, The Elder Scrolls, and Fallout. Xbox has now officially confirmed that these series will become the core of Bethesda's future strategy.
Sharma said the restructuring is designed "to focus on higher priority projects," adding that none of the publicly announced games have been canceled as part of the changes.
According to Bloomberg, ZeniMax will undergo a significant management overhaul by reducing layers of leadership in an effort to speed up game development. As a result, the company is expected to produce fewer experimental titles like Starfield while placing greater emphasis on major franchises such as Fallout, The Elder Scrolls, DOOM, Quake, and Wolfenstein.
One of the projects affected by the restructuring is Marvel's Blade. Reports claim the game has exceeded its budget and has been internally delayed, leaving its future under review alongside the French government.
Rumors that Obsidian Entertainment was facing closure have also been denied. Likewise, reports claiming the studio is developing a new Fallout game have not been confirmed. However, director Josh Sawyer previously noted that any decision to develop a new Fallout title would ultimately come from Xbox leadership rather than the studio itself.
There are also ongoing rumors about potential remakes of Fallout 3 and Fallout: New Vegas, which could help bridge the gap before Fallout 5 arrives. Earlier this year, reports also claimed that another unannounced Fallout project had been canceled, although no details about its scope or development have surfaced.
For now, Bethesda and ZeniMax remain focused on the development of The Elder Scrolls 6, while Fallout 5 appears to be a much longer-term project. Xbox has nevertheless reaffirmed its commitment to investing in its biggest and most recognizable franchises.
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