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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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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