Xbox CEO Asha Sharma praised The Elder Scrolls VI during a visit to Bethesda, while workers protested Microsoft’s layoffs with a giant inflatable rat and 800 red flags outside the office. The protest coincided with Sharma’s live playthrough announcement, highlighting tensions over corporate restructuring and game development.
IGN Asha Sharma’s recent visit to Bethesda Game Studios in Rockville, Maryland, unfolded against a backdrop of labor unrest, as workers staged a protest to highlight the impact of Microsoft’s ongoing layoffs. During the trip, Sharma shared her impressions of The Elder Scrolls VI, a long-awaited RPG, while union members outside the office displayed a giant inflatable rat—known as Scabby in labor movements—and 800 red flags, each representing a laid-off employee.
Protesters Mark Microsoft’s Layoffs With Inflatable Rat and Flags
CWA union members at Bethesda’s Rockville office deployed a massive inflatable rat and a wall of red flags to protest Microsoft’s layoffs, which have affected 1,600 workers so far, with another 1,600 slated for termination. Nathan Hahn, a technical producer and union member, explained the action: We heard that Microsoft leadership was coming to our office this week, and decided to make our presence visible at the office to show how our developers have been impacted by these devastating layoffs.
The protest included 800 red flags outside the studio, each symbolizing a laid-off worker since July 2025. Hahn added that employees had initially placed posters inside the office but were instructed to remove them, prompting the use of balloons as an alternative. Each flag was a public reminder of how many people management cut from our teams—not just our colleagues and coworkers, but our friends at the end of the day,
he said.
Sharma’s Praise for Elder Scrolls VI Sparks Speculation
During her visit, Sharma participated in a live playthrough of The Elder Scrolls VI, later posting on X: Live playthrough of *The Elder Scrolls VI: ********* this morning. The scale and grandeur are incredible. The story is even greater.
The asterisks obscuring the subtitle ignited fan speculation about the game’s title, with guesses ranging from “Dominion” to “Skyrim 2.”
Layoffs Erode Morale, Union Demands Fair Contracts
We’re not the same id.
We’re half the same id.
It’s not the IP.
Our name doesn’t matter.
Union members plan to escalate their efforts, with rallies scheduled for August 18 across the U.S. and Canada. Hahn stated, We’re mobilizing to fight back against these layoffs not just to ensure impacted Xbox devs and testers get treated fairly, but to remind our company and game studios everywhere that layoffs like this cannot continue.
Microsoft’s Strategic Shift Amid Industry Backlash
The company’s “great reset” initiative, announced by Sharma, aims to return Xbox to profitability but has been met with criticism for its human cost.
Despite the backlash, Microsoft continues to prioritize flagship titles like The Elder Scrolls VI, which remains a key part of its strategy. However, the disconnect between leadership’s public enthusiasm for the game and the struggles of its workforce has fueled further discontent. As Hahn noted, If leadership at Microsoft don’t have the courage to do what’s right for our studios to make the best possible games, it’s up to us to stand up for each other and protect the future of our careers and the game industry.
What’s Next for Elder Scrolls VI and Xbox?
The next major development for The Elder Scrolls VI remains unclear, though Sharma’s comments suggest the game is progressing. However, the lack of a confirmed subtitle and release date leaves fans in limbo. For Xbox, the coming weeks will test its ability to balance corporate restructuring with the preservation of its creative studios, as workers prepare for further protests and union actions.
The August 18 rallies, organized by the Communications Workers of America, could mark a turning point in the ongoing labor disputes.
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