The many internal layoffs at Bethesda Studios comes from the larger changes at Xbox, whose “reset” after new leadership has seen many of their partnered game development groups get downsized significantly. With some studios parting ways with Xbox entirely, Bethesda still remains one of the company’s core game creation teams, albeit with a newfound focus on existing IPs like Fallout or The Elder Scrolls. After enduring job cuts of their own, Bethesda’s narrowed direction on future projects means that at least one has been shelved for the time being.
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There have been rumors that Bethesda was working on new projects, including titles that were outside of the developer’s normal wheel house. Currently, ongoing support for games like Fallout Shelter, Fallout 76, and The Elder Scrolls Online are still priorities for Bethesda, even after the Xbox layoffs have reduced their staff. As a result, any experimental projects are definitely at risk of cancellation, as creators at Bethesda focus more on making the recently announced Fallout 3 and Fallout: New Vegas remasters alongside Fallout 5 or The Elder Scrolls 6.
Bethesda’s Layoffs Have Possibly Caused A Wolfenstein PvP Shooter Project At The Studio To Be Cancelled

One of the employees who was included in Bethesda’s portion of Xbox layoffs was revealed to have shared details about which project they were working on at the studio. According to an analytic X post, one of the details shared was that the former employee was an associate producer on an unannounced PvP FPS title that was cancelled as the layoffs were taking place at Xbox. The employee’s role was tied to scheduling and team coordination, indicating that the project was at least off the ground and being actively worked on within Bethesda.
Many fans have theorized that the PvP game that got cancelled was a new Wolfenstein title, rather than Quake, a franchise Bethesda has been clear about supporting despite layoffs. The Bethesda employee tied to the X post in question is listed to have worked with Machine Games, a group full of talented creators who’ve worked on past Wolfenstein titles. Machine Games is also responsible for Indiana Jones and the Great Circle, another project that links them to Xbox and Bethesda for other planned collaborations.
In fact, a 2023 roadmap that Bethesda posted suggested a game called “Project Platinum” at the time, which was confirmed to be a title being worked on by Machine Games. Comparisons to Counter Strike and Rainbow Six Siege were mentioned at that time, but no further information was given. With other Machine Games employees posting similar statements about a “cancelled project” before and after the Bethesda producer, it’s likely the Project Platinum was the one that got scrapped following Xbox’s internal decisions.
Lost Games Through Xbox’s Internal Shifts May Become More Common In Coming Months

Bethesda’s choice to cancel this FPS project is, unfortunately, not surprising considering the current landscape of Xbox. Bethesda has lost a great number of developers, artists, and producers, meaning that they cannot support the same amount of projects they were developing before. Based on statements from Xbox and Bethesda, only a select few of their IPs will take up the studio’s focus from this point forward, with any associated studios following the same mandate.
Thankfully, the Wolfenstein franchise is one with plenty of followers, so if Bethesda’s project was tied to a new title in that series, it will likely get picked up again in due time. On the other hand, brand-new IPs like the recent sci-fi RPG Starfield are unlikely to happen again within the next decade, as Bethesda’s focus on existing brands will likely cut out or cancel any projects without an established following. Doom, Quake, and Wolfenstein are all FPS series that are safe, but something fresh for Bethesda’s library would be too risky for Xbox to invest in.
Machine Games may even still work on a new Wolfenstein, just not right now as Bethesda has cancelled what could have been their project for now. Other development groups could go through similar situations, with Bethesda shelving the development of anything that isn’t listed in their immediate focus. This philosophy is likely being applied to other game studios within Xbox’s umbrella too, such as Blizzard Entertainment or Mojang.
Due to non-disclosure agreements and lack of other internal information, there could be dozens of gaming projects getting cancelled all across Xbox, not just at Bethesda. It may be years before we learn the full scope of the company’s restructure, and just how many promising titles were lost in the process. The vague details of a former employee are our only clues to what is happening behind the scenes at Bethesda Studios, but other groups are almost certainly going through the exact same situation.
What do you think of the PvP FPS game cancellation at Bethesda? Leave a comment below or join the conversation in the ComicBook Forum!








