Bethseda was nearly bankrupted after Daggerfall and the flops Redguard and Battlespire, so when they were bought by Zenimax they went for the moolah and launched Elder Scrolls on console. That's why Morrowind is such a huge decline after Daggerfall in every way except arguably for unique setting and lore, although Kirkbride's rambling isn't so attractive and mysterious anymore after ten years.
The true Bethseda died after Daggerfall when Lefay and Peterson left and Howard and Rolston became project leaders.