United Kingdom, July 8 -- Bethesda bosses say the company needs to "change course" and focus on games "with the greatest potential".

The studio, which is behind franchises like The Elder Scrolls, has been impacted by Microsoft's announcement that 4,800 people are affected by sweeping layoffs on the way, which will include 3,200 at Xbox alone and means the various subsidiaries will also be facing changes.

As reported by IGN, Bethesda has been hit particularly hard by the layoffs - which started on June 6 with 1,600 people across Xbox losing their jobs - and boss Jill Braff has issued a memo to staff.

She wrote: "To be successful in the future, we need to change course.

"We must strengthen our business, return to sustainable growth, and...