Elder Scrolls Online’s shift from DLCs to smaller updates not linked to Microsoft layoffs, dev says

ZeniMax Online has said The Elder Scrolls Online’s move to smaller, free seasonal updates was planned well in advance and is not a response to Microsoft’s recent layoffs, despite the timing of the changes.

The Elder Scrolls Online developer ZeniMax Online Studios has pushed back against suggestions that the MMO’s move away from large annual expansions is linked to last year’s mass layoffs at parent company Microsoft.

The studio confirmed last week that The Elder Scrolls Online will no longer follow its traditional paid DLC expansion model, instead shifting to smaller, free seasonal updates released more frequently.

The announcement came amid ongoing scrutiny of Microsoft’s 2025 restructuring, which saw more than 9,000 roles cut across the business and resulted in the cancellation of several Xbox projects, including ZeniMax Online’s unannounced sci-fi MMO, Project Blackbird.

Executive producer Susan Kath said the timing was coincidental, explaining that work on the seasonal model began 12 to 14 months earlier.

Speaking with RockPaperShotgun, she said: “Seasons is not in any way a response to the layoffs.

“We kicked off the Season work at least 12 to 14 months ago. We started making the changes in the team to move in this direction, knowing that this was our intent.”

While acknowledging that 2025 had been “a hard year” for the studio, Kath argued that the cancellation of Blackbird ultimately allowed more developers to focus fully on The Elder Scrolls Online.

ZeniMax staff who were previously split between projects are now dedicated to the MMO, which she said has, in some areas, increased available resources rather than reduced them.

The seasonal strategy will see The Elder Scrolls Online receive quarterly updates starting in April, alongside a new battle pass system featuring a free track and optional paid tiers.

Earlier expansions will also be rolled into the base game, lowering the barrier for new players and reducing reliance on large, headline DLC launches.

Game director Nick Giacomini said the shift would give the team greater flexibility to address long-standing issues and improve core systems, rather than constantly chasing the next major expansion.

While he admitted the layoffs had an emotional impact on staff, Giacomini said the studio remained confident in The Elder Scrolls Online’s future under its new model.