The Elder Scrolls IV: Oblivion Remastered has become one of the standout success stories of 2024, achieving sales that surpassed the original’s entire year within just one month. Despite this remarkable achievement, the Virtuos studio, which handled the remaster, announced today that it is laying off 270 employees across its locations in Asia and Europe. This underscores a troubling trend in the gaming industry for 2025, where success often doesn’t translate into job security for developers.
Earlier this month, Microsoft, the parent company of Oblivion Remastered’s publisher Bethesda, also executed significant layoffs, leading to project cancellations and a studio shutdown. This raises the question: why did Virtuos decide to cut 270 roles? The studio cited “slower demand,” which has impacted its operations significantly.
Although Virtuos may not be widely known, the studio has contributed to numerous popular games, focusing on support work rather than creating original content. The year 2025 was expected to be a crowning achievement for Virtuos, with successful launches including Oblivion Remastered and updates for Cyberpunk 2077, alongside an upcoming remake of Metal Gear Solid: Snake Eater. However, the layoffs, concerning around 7% of its workforce, primarily affect teams dealing with decreased demand.
In a statement, Virtuos claims it is evolving to meet the changing landscape of the gaming industry, which has become increasingly complex. The company aims to realign its capabilities for high-value co-development but recognizes that certain areas require a reduction in workforce. Despite the layoffs, Virtuos assures that it remains committed to investing in its global delivery and creative collaboration, although it will do so with a diminished team.
The situation reflects broader challenges in the gaming sector, where renowned companies continue to face economic pressures, leading to ongoing layoffs and project interruptions.
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