Obsidian Entertainment, the studio behind critically acclaimed titles such as The Outer Worlds, Pentiment, and the early access game Grounded, has experienced substantial layoffs, with an estimated 25% of its workforce being let go. The cuts affected approximately 60 to 70 individuals across various departments, including producers, artists, designers, programmers, QA testers, and writers.
Sources indicate that many of those impacted were senior employees, some with over a decade of experience at the 23-year-old studio. Notably, the art director for The Outer Worlds and the studio's sole recruiter were among the departed. These roles were eliminated primarily on July 6, coinciding with Xbox's initial wave of 1,600 layoffs, with a smaller portion of affected employees notified of their departure later in the year.
The future of ongoing projects at Obsidian remains unclear for remaining staff, who have yet to receive formal guidance on how to proceed with current projects given the significant reduction in personnel. However, work on Grounded 2 and the announced downloadable content for The Outer Worlds 2 is expected to continue. Employees anticipate further details during a studio-wide meeting scheduled for July 7. Xbox has declined to comment on the specifics of the layoffs.
Founded in June 2003 by former Black Isle employees, Obsidian Entertainment has a storied history, known for developing titles like Star Wars: Knights of the Old Republic II: The Sith Lords, Fallout: New Vegas, and Pillars of Eternity. Since its acquisition by Microsoft in 2018, the studio has released The Outer Worlds, Grounded, Avowed, and Pentiment. Pentiment, released in 2022, garnered significant accolades, including a Peabody Award and the Game Developers Choice award for best narrative. The Outer Worlds, launched in 2019, received multiple Game of the Year awards and recognition for its writing.