Leaked Xbox Memo Reveals Obsidian’s Fate Under Bethesda
News Source
•Wed, 23 Sep 2026 18:59:51 GMT
📰 What Happened
Microsoft announced a new wave of Xbox job cuts on 22 September, affecting 268 developers. The cuts came with a reorganisation that merges several studios.
One big change moves Obsidian Entertainment under Bethesda. Some fans worry about the studio's future, because Obsidian made the much-loved Fallout: New Vegas.
A leaked memo from Bethesda Game Studios head Jill Braff, obtained by IGN, said the change is mainly a new reporting line. She said Obsidian will keep the creative identity that makes it different.
🔍 The Backstory
Xbox has had a hard 2026. In early July it said it would cut 1,600 jobs and sell off studios including Double Fine. More cuts are expected.
The same reshuffle moved Halo under Activision. Boss Asha Sharma said Xbox will focus on its existing series, which puts brand-new ideas lower down the list.
Obsidian has released many games in about 15 years, including Pillars of Eternity, The Outer Worlds, Pentiment, Avowed and Grounded. Bethesda has made far fewer, with Starfield as its only new title.
🎯 Why It Matters
Obsidian fans fear its games will become safer and less experimental. The cuts also show how quickly thousands of game industry jobs can disappear.
Microsoft announced a new wave of Xbox job cuts on 22 September, affecting 268 developers. The cuts came with a reorganisation that merges several studios.
One big change moves Obsidian Entertainment under Bethesda. Some fans worry about the studio's future, because Obsidian made the much-loved Fallout: New Vegas.
A leaked memo from Bethesda Game Studios head Jill Braff, obtained by IGN, said the change is mainly a new reporting line. She said Obsidian will keep the creative identity that makes it different.
Xbox has had a hard 2026. In early July it said it would cut 1,600 jobs and sell off studios including Double Fine. More cuts are expected.
The same reshuffle moved Halo under Activision. Boss Asha Sharma said Xbox will focus on its existing series, which puts brand-new ideas lower down the list.
Obsidian has released many games in about 15 years, including Pillars of Eternity, The Outer Worlds, Pentiment, Avowed and Grounded. Bethesda has made far fewer, with Starfield as its only new title.
Obsidian fans fear its games will become safer and less experimental. The cuts also show how quickly thousands of game industry jobs can disappear.