Obsidian Entertainment has become part of Bethesda’s organizational structure as Microsoft continues to reorganize its gaming divisions. The change places the studio behind Fallout: New Vegas under the leadership of Jill Braff, Bethesda’s president, but does not affect the creative autonomy promised to the team.In an email to employees, Braff said Obsidian’s “creative identity and strengths” would remain at the heart of the studio and its projects. Obsidian CEO Feargus Urquhart and the rest of the leadership team will also remain in charge, now reporting directly to Bethesda’s president.Bethesda Game Studios will remain responsible for the Fallout franchise. The two teams, which have maintained a longstanding relationship, will continue working together as a new project in the series gets underway. Braff said more information would be shared in the coming months.The change is part of a broader Xbox restructuring. The first round of cuts included 1,600 layoffs and ended Microsoft’s relationship with five developers tied to the division. This week, another 268 positions were eliminated, while studios including Halo, Rare and World’s Edge were moved to different areas of Microsoft’s organization.During the previous round of layoffs, Obsidian reportedly lost around 25% of its workforce and canceled several projects in development. Avowed and The Outer Worlds 2, two of the studio’s original games released this generation, reportedly performed below expectations.The new structure follows the franchise-driven model championed by Xbox leadership, with a focus on series such as The Elder Scrolls, Halo and Fallout. For Obsidian, that means continuing under Urquhart’s leadership while working alongside Bethesda Game Studios on the next Fallout project, without abandoning the creative identity that sets the studio apart.
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