The Elder Scrolls 4: Oblivion Remastereddeveloper Virtuos is reportedly in the middle of mass layoffs, affecting up to 300 people. Widespread job losses have populated headlines lately, thanks largely to massive cutbacks across several Microsoft-owned studios. While Virtuos is not under the Microsoft umbrella, theElder Scrolls 4: Oblivion Remasteredstudio has seemingly followed the same unfortunate trend.

Virtuos has made a name for itself for its ports and remasters over the years. TheMetal Gear Solid Deltaco-developer worked onHorizon Zero Dawn’s PC port, the iOS version ofXCOM,The Outer Worldsfor Switch, and more before taking onOblivionand the upcomingMGSgame. Despite such an impressive resume and a solid level of recent success, the company is apparently joining the ranks of many studios making dramatic cuts to its staff.

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French video game journalist Gauthier Andresbroke the news in a Bluesky thread, claiming that inside sources reported that Virtuos is laying off roughly 7% of its global workforce. The cuts will reportedly be most severe in China, affecting roughly 200 employees, but an estimated 100 jobs are also at risk across the US and Europe. It’s a sudden and surprising move for the company, considering howVirtuos opened a new studio in South Koreamere months ago.

Oblivion Remastered Studio Virtuos Reportedly Laying off Around 300 Employees

According to Andres, Virtuo’sOblivioncontract did not include royalty bonuses tied to the game’s success. Consequently, even thoughOblivion Remasteredsmashed the original’s sales figures, its co-developer did not necessarily see profits related to that strong performance. At the end of the remaster’s development cycle, Virtuos reportedly reduced bonuses across the team and announced a freeze on raises, inciting job fears among the staff. Now, several months later, it seems those fears were legitimate.

Multiple witnesses also told Andres that Virtuos has been slowly getting more involved with generative AI. It’s unclear if this is part of the issue leading to the layoffs, butXbox is rumored to be replacing hundreds of employees with AI, so such a move wouldn’t be without precedent. Regardless of the cause, though, it’s a worrying sign for many in the gaming industry. Layoffs and cancellations have abounded recently, and AI is getting more powerful at the same time as game development is getting more expensive.

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As official statements from Virtuos and its employees potentially come out, the situation and the causes behind it will become more clear. For now, it seems the layoffs won’t affectOblivion Remasteredor the upcomingMetal Gear Solid Delta.

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