Obsidian Entertainment is now officially operating under the Bethesda umbrella as part of a broader restructuring of Xbox Game Studios. The studio, known for titles such as Avowed and The Outer Worlds, will work alongside Bethesda Game Studios on an upcoming <em>Fallout</em> game.
Microsoft chief content officer Matt Booty announced the changes in a blog post on September 22. While Obsidian's ongoing projects, including Grounded, will continue, the announcement did not specify the future of other studio franchises, such as a potential <em>Avowed</em> sequel. However, other reports suggest Obsidian has been tasked with developing a new <em>Fallout</em> title.
Founded in 2003, Obsidian has a history with both BioWare and Bethesda, contributing to <em>Star Wars Knights of the Old Republic II: The Sith Lords</em> and <em>Fallout: New Vegas</em> respectively. The studio later found success with its crowdfunded RPG, <em>Pillars of Eternity</em>, and the sci-fi RPG <em>The Outer Worlds</em>. Microsoft acquired Obsidian in 2018 as part of its strategy to bolster the Game Pass subscription service.
This move appears to align with Microsoft's recent shift to concentrate resources on major franchises like <em>Diablo</em>, <em>The Elder Scrolls</em>, and <em>Fallout</em>. Future <em>Fallout</em> releases are expected to include remasters of <em>Fallout 3</em> and <em>Fallout: New Vegas</em>, with <em>Fallout 5</em> currently in pre-production at Bethesda Game Studios.