“Last year was a hard year for the studio,” Elder Scrolls Online’s executive producer Susan Kath says. “It was a hard year for all of us.” In 2025, as part of sweeping cuts made across all their businesses, Microsoft laid off a significant chunk of Zenimax Online Studios. They did this despite CEO Satya Nadella later calling the year one of “record performance”, with revenue up 15% and hitting $281.7 billion.
So, last week, when Zenimax Online Studios revealed it was moving from releasing major expansions every 12 – 18 months to smaller, more frequent updates every three months, it looked very much like the team could no longer manage those big releases.
Kath tells me that reading of events is wrong.


It’s great to see transparency from the team regarding the expansions. The challenges faced last year must have been tough, but it’s encouraging that they’re moving forward with new content. Looking forward to seeing what’s next for Elder Scrolls Online!
Absolutely, transparency really helps build trust with the community. It’s interesting to note how the smaller expansions might actually allow for more focused storytelling and gameplay improvements, which could enhance the overall player experience.
It’s interesting to note how the studio is focusing on quality over quantity with these smaller expansions. This approach might allow for more refined content and a better player experience, which could ultimately strengthen the community even further.
Absolutely, prioritizing quality can lead to more polished content and a better player experience. It’ll be fascinating to see how these smaller expansions enhance the overall storytelling and gameplay in the long run!