The creators of Elder Scrolls VI are standing alongside their colleagues. A major protest action is making headlines.
Currently working as a developer in any capacity under Microsoft at the Xbox Game Studios is surely not pleasant. The massive wave of layoffs of 1,600 employees and the threat that another 1,600 employees will be laid off this year are still weighing heavily on many.
While the head of Xbox is trying to drown out the negative news with some positive PR about the new “Elder Scrolls” game, the employees are not allowing that – they are creating visible protest.
One of the affected studios was the creators of The Elder Scrolls Online:
Rat and red flags as a reminder to the bosses
What did the Xbox head want? The Xbox head, Asha Sharma, visited Bethesda. She wanted to take a look at Elder Scrolls VI, which has been in development for many years and is eagerly awaited by fans. But while Sharma reports on social media about “live gameplay” she has seen, there is clearly visible protest outside the Bethesda building that dampens the excitement about the news.
What have the developers done? Even though the team of Elder Scrolls VI seems to be only slightly affected by the layoffs, both the employees and members of the CWA (the “Communications Workers of America” union) have drawn attention through protests.
In front of the company building, they have planted countless red flags in the ground. Each flag represents a person who was laid off by Microsoft. On the Bluesky account of OneBGS (the “Bethesda Game Studios Union”), the following post could be read:
Today we had a special guest from Microsoft’s leadership at our headquarters. We refuse to let the bosses forget what game studios actually consist of: The employees.
As a welcome gift, we placed hundreds of flags outside to honor all the game developers who have been laid off by Microsoft in 2026 (so far).
A giant inflatable rat was also prominently placed by members of the CWA, which, with its size of about 6 meters, clearly shows what is thought of the layoffs that have already occurred and those that are still to come. These inflatable rats are regularly seen at union protests, primarily against layoffs and financial constraints on employees.
NEW: CWA union members have inflated a giant rat and deployed a wall of red flags representing laid off Xbox workers outside the Bethesda office in Rockville. The protest was timed to coincide with a visit from Xbox CEO Asha Sharma, who is apparently at the studio today.
— Chris Kerr (@kerrblimey.bsky.social) August 11, 2026 at 6:22 PM
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The events are clearly overshadowing the excitement that Asha Sharma apparently should have spread that Elder Scrolls VI is on the right track. For the developers at Zenimax, it is very clear: they are not doing well and they have lost many colleagues and friends and fear for those who will follow in the coming months.
The only studio under the umbrella of Xbox that should at least feel somewhat safe is Blizzard. Because they just recently shared the joyful news with their employees that they are currently the most powerful studio in all of Xbox and are laying the foundation for a glorious future.
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