Obsidian Entertainment, known for titles such as Fallout: New Vegas, The Outer Worlds, and Pentiment, has been affected by recent layoffs at Microsoft's Xbox division. While the exact number of affected employees is not public, social media posts from current and former staff indicate that developers have been let go from the studio. This marks the first time Obsidian has been impacted by the waves of layoffs that have swept through Xbox since 2020.
Among those reportedly laid off is Daniel Alpert, an artist who had been with Obsidian for 21 years. Alpert's extensive credits include work on Neverwinter Nights 2, Fallout: New Vegas' DLC, Alpha Protocol, and The Outer Worlds 2. On the other end of the employment spectrum, engineer Wenzheng Huang had only been with the company since May. Other departures include area designer Tyler McCombs, communications producer Geoffrey Fogle, and writer Jay Turner, whose credits include Avowed. Turner also has a notable history with BioWare, with contributions to Jade Empire, Dragon Age: Origins, and Mass Effect 2.
Additional developers reportedly affected include Pentiment artist Soojin Paek, Avowed narrative designers A.K. Fedeau and Katie Tenney, and Avowed area designer Bre Seale. These departures bring the confirmed count to nine employees at the time of reporting. Both Jay Turner and Obsidian narrative lead Kate Dollarhyde, who remains with the company, have described the layoffs as significant in scope for the studio.
Under the California WARN Act, companies with over 100 employees must provide advance notice for layoffs exceeding 50 individuals. Obsidian has not reported any such layoffs on the California WARN Act Tracker, suggesting the current count falls between nine and 49 employees. This figure, while numerically small compared to the 1,600 employees laid off across the wider Xbox division, represents a significant event for Obsidian, a studio that has achieved critical acclaim with multiple titles featured in industry top lists.
Obsidian has maintained a high output in recent years, releasing five games between 2020 and 2025, including Pentiment, the Grounded series, and the upcoming Avowed and Outer Worlds 2, in support of Xbox's Game Pass initiative. The layoffs come amid broader financial pressures within Xbox, with an additional 1,600 employees expected to be laid off within the next 12 months. This situation raises concerns about the long-term future of the studio, which has navigated precarious financial situations multiple times in its 25-year history.