Fans hoping for a sequel to Bethesda’s space-faring RPG might need to temper their expectations. Former Bethesda lead systems designer ‘Kurt Kuhlmann’ recently shared a disappointing update regarding the franchise. According to Kuhlmann, “Starfield 2” is likely not happening. He stated that the original game simply was not successful enough to justify a sequel. However, he did note that if Bethesda proves him wrong, a sequel could fully realize CEO Todd Howard’s ambitions.
Disappointing Sales & Recent Starfield 2 Updates
Kuhlmann recently shared these thoughts in an interview with FRVR. He left Bethesda shortly after Starfield launched in September 2023. This departure ended his impressive 20-year run with the studio. Afterward, he joined “Lightspeed L.A.” as a principal world designer for ‘Last Sentinel’, but he unfortunately faced layoffs in July 2026.
His comments follow the game’s recent expansion to the PlayStation 5. Despite launching on Sony’s console after a period of Xbox exclusivity, Starfield sales fell short of expectations.
Earlier this year, in April 2026, Bethesda released the massive Free Lanes update across all supported platforms. This update overhauled the game’s core systems. At the same time, Bethesda launched ‘Terran Armada’, the game’s second paid story DLC. This expansion introduced new weapons and locations for players to uncover. While Bethesda claims they still have plans for the RPG, the game has not received any major updates since April.
Massive Xbox Layoffs & Studio Mergers
Adding to the uncertainty, Microsoft is drastically restructuring its gaming division. Just days before Kuhlmann’s interview was published, Xbox confirmed it laid off 268 staff members across its first-party studios. Microsoft stated this ongoing restructuring process is currently three-fourths complete.
These layoffs significantly impacted Bethesda. Consequently, time will tell if the company secretly scuttled its remaining Starfield plans during the process.
As part of this massive consolidation effort, Activision absorbed World’s Edge and Rare. Furthermore, Microsoft placed Obsidian Entertainment under the Bethesda umbrella. Fortunately, Obsidian will still maintain control over its own projects, such as ‘Grounded 2’. Currently, Bethesda and Obsidian are collaborating heavily on the ‘Fallout’ franchise. This partnership even includes a brand-new crossover collaboration title between the two companies. However, the long-term effects of this studio merger remain unclear.
What is Next for Bethesda?
With Starfield’s future looking grim, Bethesda is shifting focus. Their next major focus is the highly anticipated ‘The Elder Scrolls 6’. Bethesda has kept details strictly under wraps. Still, Xbox CEO Asha Sharma recently called the upcoming RPG “a beautiful game”.
Sharma did not confirm whether The Elder Scrolls 6 will launch as an Xbox console exclusive. Instead, she reaffirmed that Xbox will continue evaluating exclusivity on a case-by-case basis. Since previous massive hits like ‘Skyrim’ and ‘Oblivion’ enjoyed multiplatform releases, The Elder Scrolls 6 might follow the exact same path.
