“I want us to be the most successful studio in our entire organization” — The Elder Scrolls Online developers talk future plans after recent Microsoft cuts

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Despite recently facing a game cancellation and staff reductions, Rich Lambert, the studio game director at ZeniMax Online Studios, is focused on building the most thriving and successful team possible.

In a recent interview with GamesIndustry.biz, leaders at the studio, including Lambert, discussed the impact of Microsoft’s gaming layoffs in July on the team and shared their plans for the future.

Lambert stated his goal is for their studio to become the leading studio within the entire company. He acknowledged the presence of other highly successful studios like Bethesda Game Studios, MachineGames, and id Software, but expressed his desire for his team to be recognized as the benchmark for success, just as they view Bethesda Game Studios.

He points to Todd Howard’s team, noting their incredible streak of five consecutive Game of the Year awards and impressive history. He says that’s the level of success he’s aiming for with his own team.

ZeniMax Online Studios, the creators of The Elder Scrolls Online, was also developing a second large online role-playing game, known internally as ‘Blackbird.’ Despite positive feedback from Microsoft Gaming CEO Phil Spencer after he played it, the project was recently canceled as part of larger company cuts.

Lambert confirmed the team still intends to develop games beyond The Elder Scrolls Online when questioned about future projects.

He says he’s eager to continue making games, and the whole team feels the same way – they’re not finished creating yet.

You can’t rely on any single game lasting forever. We definitely hope Elder Scrolls Online thrives for decades and we’re committed to it, but it’s risky to focus all our efforts on just one thing.

ZeniMax Online Studios was already shifting its approach to developing The Elder Scrolls Online before the recent layoffs. Plans for 2025 updates were significantly different from the team’s usual yearly chapter releases.

Xbox is still feeling the weight of recent cuts

The job cuts in July significantly impacted the entire Xbox division, leading to the cancellation of several projects and affecting many teams.

The shutdown of The Initiative, a game studio established in 2018, was a significant setback. They were developing a new version of Perfect Dark, which was previewed at the 2024 Xbox Games Showcase.

Microsoft and Take-Two Interactive discussed a potential partnership where Take-Two would finance and release the project, but they ultimately couldn’t come to terms.

What will ZeniMax Online Studios do next?

As a fan of The Elder Scrolls Online, I’m happy to see the developers at ZeniMax Online Studios continuing to find ways to make the game even better.

I’ve been wanting a few things added for a while now, and cross-play is at the top of my list. It feels odd that we can’t play with friends who are on different systems, especially since most new multiplayer games offer cross-platform play.

I’ve often asked the developers about adding romance options for our characters, and they’ve always seemed open to the idea. However, we haven’t seen any real progress on that front yet.

I’m still hoping this team creates a new game outside of the Elder Scrolls series someday. I don’t know if they’ll revisit Project Blackbird or find another project that fits, but it would be a waste of their talent if they didn’t release any new titles.

Earlier this year, after ZeniMax Media announced layoffs, I spoke with workers who are union members. They described the atmosphere as extremely negative, noting that many skilled developers had lost their jobs. I’m hopeful the situation will get better over time.

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2025-09-16 14:10