id has certainly been hit with damaging layoffs, but I'm not sure it's the current Xbox climate overall that's the problem. Bethesda specifically, if we're talking Elder Scrolls, has been sitting on their hands for a decade. This is a company that had twice as many devs as the last time they released a game, without making anything other than remasters and Fallout side projects. A projected date in the 2030s for their next release in the franchise means they've fully lost the plot. There were literally 14 levels of management on the project, which has been slimmed down to 5.

Honestly, cutting some of the fat at Bethesda and handing Fallout to Obsidian is probably the best thing that could have been done to get the best and soonest new Elder Scrolls and Fallout. It's a shame that the same approach was also taken with what is a much more functional studio, but slimming down on bloated studios that move at a crawl with large numbers isn't a terrible idea.

After a certain point there does seem to be an inverse relationship between how many devs a studio has and the quality and regularity of their work.