Elder Scrolls Online's studio says the game "is here to stay" and is now working more closely with Bethesda

ZeniMax Online Studios game director Nick Giacomini has moved to reassure Elder Scrolls Online players following the wave of layoffs that hit the studio as part of Xbox's July restructuring. In a statement, Giacomini confirmed that ESO is not shutting down and that the team is now collaborating more closely with Bethesda to "build the future" of the game.

The details:

• Hundreds of staff were cut at ZeniMax Online Studios in July as part of Microsoft's broader Xbox restructuring, which also saw studio leadership fired. The cuts prompted widespread fan concern about the game's long-term future.
• Giacomini confirmed the reduced headcount has forced some schedule changes, with several larger features originally planned for later in 2026 pushed into early 2027. These include the Crimson Veldt trial, update 52, and a planned Class and Combat refresh.
• Content still arriving in 2026 includes new Thieves Guild and Sheogorath story content, experimental naval combat, underwater exploration, and a return to Skyrim, which the team describes as "never before seen" in ESO.
• The closer relationship with Bethesda is a notable shift. ZeniMax Online Studios has historically operated with considerable independence from Bethesda Game Studios, despite both sitting under the same Bethesda Softworks umbrella.