Microsoft has initiated significant layoffs, parting ways with approximately 1,600 employees on July 6th. This large-scale reduction in workforce also saw the dissolution of five studios. The upheaval extends to studios remaining under the Xbox umbrella, which are now being directed to concentrate on the company's most profitable game series, such as Fallout.
Despite this strategic shift, Obsidian Entertainment, known for its work on the Fallout: New Vegas spin-off, has reportedly experienced substantial staff reductions, with around a quarter of its workforce affected by the cuts. The full ramifications of these changes on game development and studio operations are still unfolding.