Key information
Bethesda president Jill Braff has informed Obsidian Entertainment staff that the studio will retain its creative identity despite moving under Bethesda's reporting structure. The update follows Xbox's recent round of layoffs and corporate restructuring.
Feargus Urquhart and Obsidian's current leadership team will continue managing daily operations while reporting directly to Braff. Meanwhile, Bethesda Game Studios maintains control over the Fallout franchise. Obsidian continues work on current projects such as Grounded and a new Fallout game, though a sequel to The Outer Worlds 2 is not currently planned.
The communication to employees was initially reported by Aftermath after being sent out following Xbox's announcement of further downsizing and studio portfolio changes. Obsidian, which was acquired by Microsoft in 2018, lost 52 employees during the reorganization, consisting of 43 based in California offices and nine remote workers in the same state.
Braff stated that the new Fallout project builds upon the long-standing relationship between the two studios, with more details promised in the coming months.
