Summary
- Bethesda rejected Obsidian's proposal for Elder Scrolls spin-offs that would have served as bridges between the main games, similar to Fallout: New Vegas.
- The spin-off games would have allowed for further exploration of the Elder Scrolls universe, taking place in the same main universe or even divergent timelines.
- Despite Bethesda's rejection, there's hope for the idea to be realized since both Obsidian and Bethesda are now owned by Microsoft, presenting new opportunities for the franchise.
There is no doubt that The Elder Scrolls series is massively successful, with five main games and a handful of smaller and online additions to the family. However, recently it has been revealed that there were almost Elder Scrolls spin-offs that would have bridged the gap between the main games. Upon hearing the news, many were understandably disappointed that this had never happened, and it got others dreaming of what could have been.
The Elder Scrolls is a huge fantasy RPG series from Bethesda that started back in 1994 with The Elder Scrolls: Arena, continuing on through to Skyrim and The Elder Scrolls Online. From there, the world has been expanded with each new installment, with the most recent addition, Skyrim, continuing to engage with players having been released over 15 times in various versions. Amazingly, the universe of The Elder Scrolls could have been even bigger, but Bethesda stopped this idea before it even got off the ground.

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Obsidian’s Ideas For Elder Scrolls Spin-Offs Were Rejected
Responding to an article by 80 Level, Obsidian Entertainment's co-founder Chris Avellone posted confirmation on his X (formerly Twitter) that spin-off Elder Scrolls games were pitched to Bethesda. Avellone explains that Obsidian intended for them to serve the same function that Fallout: New Vegas has served within the Fallout franchise and act as bridges between the main Bethesda installments. Alas, Bethesda turned down Obsidian's offer, with many, including Avellone, believing that the reason was New Vegas' reception.
Obsidian Would Have Allowed Further Exploration Of The Elder Scrolls Universe
Avellone explains in his post that the idea was inspired by the Call of Duty series, with Treyarch, Infinity Ward, and Sledgehammer Games each taking turns producing the next title in the series. The idea that was pitched to Bethesda was that while Bethesda would continue to create the core Elder Scrolls releases, Obsidian would make separate games to bridge the gap between them. Avellone notes that these would have taken place in the same main universe or even divergent timelines.
These games could have linked to the main canon timeline of the Elder Scrolls as much as Bethesda wanted them to. They could have acted as bridges between the core games, followed events in different areas of the world, or even taken place in different eras. Avellone notes that the main intention was to provide more adventures, which would have benefited the players as well as both studios.
However, the answer from Bethesda was no, and Avellone mentions that he felt that Bethesda was never happy with how New Vegas was received. It is clear whether that is a reference to the unfinished and bug-filled state in which New Vegas was launched after a very short development cycle. Although many speculate it instead refers to the player base's preference for Obsidian's installment over Bethesda's, with much of the fan base pointing to New Vegas as an example of better writing.

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Much of what Avellone alludes to, particularly the expansion of the shared universe, is currently being accomplished by The Elder Scrolls Online, which has managed not only to tell its own story but also add context to many Elder Scrolls events and characters. However, an Obsidian-made Elder Scrolls game would have had a very different and intriguing feel than Bethesda’s installments. Looking at the studio’s forays into other established IPs, such as Knights of the Old Republic 2 and Neverwinter Nights 2, shows a deep understanding of how to use an established world to tell a compelling story.

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Feargus Urquhart, Obsidian's CEO, told interesting and compelling story for New Vegas. It is a shame that the Elder Scrolls were not able to receive this attention, especially considering the lackluster factions present in Skyrim.
All may not be lost, though, as both Obsidian and Bethesda are now owned by Microsoft as part of its Xbox Game Studios. This presents a new opportunity to see this idea realized and the world of The Elder Scrolls explored from different perspectives. Unfortunately, for now, all New Vegas and Elder Scrolls fans can do is dream of what could have been.
Source: 80 Level, Chris Avellone/X (formerly Twitter), Kotaku