The collateral damage from the recent "Xbox reset" continues, with recent reports confirming layoffs at both id Software, the studio behind Doom: The Dark Ages, and Obsidian Entertainment, the studio responsible for The Outer Worlds, resulting in workforce losses of around 50% and 25%, respectively, at the ZeniMax-led studios. According to a Kotaku report , around 60-70 workers will be let go at Obsidian, with layoffs not limited to one particular department. The publication's insider source says that there has been no communication about how the studio will redistribute the workload from a "huge list of projects" among the remaining staff. Additionally, most of the affected staff have already been informed, with many of the layoffs taking place on July 6. Other staff were informed that they would be laid off later this year in Xbox's 1,600 eliminations that are planned for financial year 2027.

Id Software has been hit much harder, losing around half of its workforce, or over 90 workers, across multiple disciplines and departments. Reports indicate that certain departments, like quality assurance, have been "decimated" by the layoffs. According to an internal email obtained by IGN , Jill Braff, CEO of Bethesda Softworks, an Id Software sister company, says that "by working more closely across the organization, sharing expertise and capabilities, and by focusing our investments on the opportunities with the greatest potential, we believe we can better support our franchises and IP with meaningful long-term potential," suggesting that smaller studios like Id Software may become support studios after the mass layoffs, and both Xbox and Bethesda have indicated that studios will be reorganized to ensure the success of their biggest franchises.