Virtuos, the studio behind The Elder Scrolls 4: Oblivion Remastered and Metal Gear Solid Delta: Snake Eater (as a support studio) has been hit with mass layoffs.
First reported by Gauthier Andres, 300 people—or 7% of the company’s workforce—are set to be let go across various locations in the United States, Asia, Europe, and three branches in France.
UPDATE: Virtuos has confirmed in a statement that it has let go a number of employees in what it calls a restructuring.
Andres says that the layoffs will “initially target China” but will impact other areas.
He added that, regarding the successful Oblivion remaster, Virtuos had a policy of “over-spending on quality” along with a “royalty free contract”. That contract had no bonuses tied to the game’s success, likely leaving money on the table for the studio.
“The result: teams put under severe strain for a purely showcase game, whose profitability [is to be] questioned,” he said via translation.
It’s said that after Oblivion’s development, Virtuos put a freeze on raises along with a reduction in bonuses, leading to questions from staff to management regarding layoffs. Upon news of the layoffs, Andres says that a strike is taking place at Virtuos Lyon to protest the layoffs and “protect the future capacity of the branch”.
It was also mentioned that the studio has been moving towards more generative AI use.
“In one year, we’ve gone from a few group-level presentations to basic but mandatory training for employees,” a source told Andres.
In addition to Elder Scrolls, Virtuos has been working as a support studio for Metal Gear Solid Delta: Snake Eater.
Insider Gaming has reached out to Virtuous for comment.
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Editor’s Note: It was initially said that Virtuos is the developer behind Metal Gear Solid: Snake Eater. The article has been updated to reflect that it is supporting the game’s development.
Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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