Key information
Bethesda head Jill Braff has reassured Obsidian Entertainment that the studio will retain its creative identity and unique character despite shifting reporting lines. The announcement follows recent studio restructurings and layoffs across Xbox.
Feargus Urquhart and Obsidian's leadership team will continue day-to-day operations while reporting directly to Braff. Meanwhile, Bethesda Game Studios retains control of the Fallout brand, and Obsidian is working on current projects including Grounded and a new Fallout title, though no sequel to The Outer Worlds 2 is currently planned.
According to an email reported by Aftermath, the administrative changes follow Xbox's portfolio-wide announcement of layoffs. Obsidian, acquired by Microsoft in 2018, lost 52 employees during the reorganisation, comprising 43 at its California offices and nine remote workers within the state. Braff noted that the new Fallout project builds on the two studios' long-standing relationship and promised further details in the coming months.
