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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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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