Workers unionize at Microsoft’s “Fallout” maker Bethesda as labor levels up in gaming

Collecting labor XP… Workers at Microsoft-owned Bethesda Game Studios, known for open-world hits like “Fallout,” “Skyrim,” and “Starfield,” have unionized. The union, which calls itself OneBGS (not a boy band), represents about 240 Bethesda employees in three US locations. Unlike many other unions in the gaming industry, OneBGS is made up of workers across all its teams, including developers, engineers, and artists. It’s the latest unionization effort in the US gaming industry, which outearns the box office by 6x.

• Quick time event: OneBGS arrives as Bethesda’s “Fallout” IP is seeing renewed interest off its popular Amazon Prime show. And soon Bethesda plans to launch an expansion for “Starfield,” which last year generated nearly $660M in sales.

• Co-op: Microsoft recognized the union this week, suggesting it’s open to negotiations. In 2022, it signed a labor neutrality agreement with the Communications Workers of America as part of its (now successful) effort to buy “Call of Duty” maker Activision.

• Next quest: OneBGS and Microsoft will have to agree on a contract, which only one US union has achieved at a major gaming company.

Burnout fallout… Gaming’s workforce hasn’t been playing on easy mode. Industry layoffs this year have hit an estimated 11K+, already eclipsing last year’s cuts as major publishers like Take-Two, Sony, and Microsoft announced reductions and closed studios. More than half of developers said they’ve experienced “crunch” (aka: grueling work hours in the months before and after game releases). In response, union efforts have leveled up. Microsoft previously recognized unions formed at its gaming subsidiaries Activision and ZeniMax, and in March unionized US Sega workers struck a deal on a new contract.