Bethesda Game Studios head Jack Braff has stated that Obsidian Entertainment's "creative identity and strengths" will be preserved following recent cancellations of multiple projects and the studio's integration into Bethesda. This assurance comes after a period of significant upheaval for Obsidian, which saw approximately 25% of its staff laid off in July and the cancellation of an Avowed sequel and other unannounced games.
Obsidian leadership, including studio head Feargus Urquhart, will continue to guide the studio, which will now report directly to Braff. Bethesda Game Studios will retain lead on the Fallout franchise. Braff indicated that both teams will collaborate on a new Fallout project, building on their existing relationship and early development efforts. He expressed respect for Obsidian's talent and history, anticipating closer collaboration.
This move into Bethesda is part of a broader restructuring within Xbox's gaming divisions. While Braff asserts that Obsidian's core creative identity will remain intact, the studio has faced considerable changes in recent months. The cancellation of projects and subsequent integration into Bethesda have led to concerns among some observers about the preservation of the studio's unique vision. The development of a new Fallout game, a franchise Obsidian has not significantly worked on in 16 years, is now a primary focus for the studio.