Bethesda reassures Obsidian that studio identity will survive reporting shift
Bethesda president Jill Braff has told Obsidian employees that the studio's move under Bethesda is mainly a change in reporting structure. She said Obsidian's creative identity will remain central, with its leadership continuing to run the studio and report to her. The shift follows Xbox restructuring and layoffs, while Bethesda Game Studios continues to lead the Fallout franchise and a new Fallout project is underway.
Jill Braff, Bethesda’s president, emailed Obsidian staff to say the shift is mostly a new reporting line. Obsidian CEO Feargus Urquhart and his leadership group will keep running the studio and answer to Braff. Bethesda Game Studios stays in charge of Fallout, and early work on a new Fallout title is already happening.
Obsidian, acquired by Microsoft in 2018, is known for The Outer Worlds, Avowed and Grounded. The move came amid Xbox restructuring and layoffs; a California notice listed 52 Obsidian jobs cut. The studio says no sequel to The Outer Worlds 2 is planned, and reporting said an Avowed follow-up was dropped for the Fallout project.
The restructuring may affect Obsidian employees through layoffs and uncertainty, while players could see continuity for Grounded and Fallout but possible changes to other franchises. Because large publishers are consolidating studios under franchise-focused models, smaller creative risks may become less common, potentially shaping what games reach audiences. Fans of Avowed or The Outer Worlds may face fewer sequels, while Fallout fans could get more attention.