Obsidian Entertainment director Brandon Adler has responded to online commentary and speculation surrounding the studio following recent layoffs within Microsoft's gaming division. Xbox cut 50 staff from Obsidian, a studio that recently released Avowed, Grounded 2 (Early Access), and The Outer Worlds 2 within the same calendar year. These cuts were part of broader layoffs impacting approximately 1,600 employees across Microsoft Gaming.
Adler, game director on The Outer Worlds 2, expressed the difficulty of the past week on LinkedIn, stating, "Not only have I had to say goodbye to some amazing game developers, but I’ve had to say goodbye to some of my best friends. I truly feel for every one of them." He also emphasized that any studio seeking to hire departing Obsidian developers would be bringing on "some of the best people around –both professionally and personally."
He specifically addressed what he termed "cold take artists" who have been discussing Obsidian's current state and future. "The number of times I’ve seen people, with no understanding of who has worked on our previous games or what they contributed, talk about how Obsidian isn’t who they used to be… is staggering," Adler wrote. He countered that the lead and director roles within the studio often remain filled by the same individuals who contributed to acclaimed titles like The Outer Worlds, Pillars of Eternity, and Fallout: New Vegas, drawing a clear creative lineage from games like Star Wars: Knights of the Old Republic 2.
Adler acknowledged that Obsidian is not the same studio it was two decades ago, but asserted that its core creative identity, or "DNA," remains consistent. He stated, "The same DNA that created KotOR, New Vegas, NWN2, and Stick of Truth. I’m extremely proud of our history and I am also excited for who we have become." He urged listeners to be critical of commentary from those lacking insight into game development and the studio's internal contributions.
Bloomberg reported that Obsidian was developing a sequel to Avowed when the layoffs occurred. While the studio's development plans have reportedly shifted, with a new Fallout project now a focus, work on the Avowed sequel is said to be continuing. Josh Sawyer, studio design director, who was reportedly working on a Fallout-style RPG, is now expected to lead the new Fallout game. This strategic shift aligns with Xbox's reported intention to accelerate the release of major franchises like Fallout and Halo, potentially moving away from the acquisition-era strategy of allowing studios to pursue more diverse projects.