The Elder Scrolls IV: Oblivion Remastered developer Virtuos is currently in a challenging situation, as it faces mass layoffs affecting approximately 300 employees. This troubling trend of job cuts has been prevalent in the industry, largely due to significant reductions at teams under the Microsoft umbrella. Although Virtuos is not a Microsoft-owned studio, it seems to follow the unfortunate pattern of staff downturns.

Virtuos has built a solid reputation for its remasters and game ports throughout the years. Among its notable projects, it contributed to the PC port of Horizon Zero Dawn, the iOS edition of XCOM, and brought The Outer Worlds to the Switch, in addition to their work on Oblivion and the forthcoming Metal Gear Solid game. Despite a strong track record and good recent performance, Virtuos appears to be following many other studios in making drastic workforce reductions.

According to journalist Gauthier Andres, who reported the news, the layoffs will primarily hit the company’s Chinese branch, impacting around 200 jobs, while another 100 positions in the US and Europe are also at risk. This sudden decision comes as a shock, especially since Virtuos opened a new studio in South Korea just a few months ago.

Andres also indicated that the cuts are linked to the absence of royalty bonuses connected to Oblivion Remastered’s performance, despite its excellent sales status. As the development phases concluded, Virtuos reduced bonuses across the team and implemented a freeze on raises, resulting in job security concerns among its workforce. Unfortunately, these fears have now turned into reality.

Additionally, reports suggest that Virtuos has been exploring generative AI, yet it is uncertain how much this influences the layoffs. Regardless of the cause, these developments signal caution for the gaming industry, which continues to experience layoffs and cancellations amid soaring development expenses.