Following Microsoft's announcement of what the company described as the most significant restructure in Xbox history, Obsidian Entertainment has confirmed it was hit by a wave of layoffs. The move, which involved cutting four game studios loose and reducing staff across the division, has cast a spotlight on the future of the studio known for Fallout: New Vegas.

Quick Facts

  • Obsidian Entertainment confirmed internal layoffs alongside the broader Xbox restructure.
  • Reports suggest a new Fallout game is in development at the studio, reportedly led by Fallout: New Vegas director Josh Sawyer.
  • Game director Brandon Adler confirmed he has had to say goodbye to both colleagues and friends during the recent layoffs.
  • Adler maintains that the studio's "DNA" remains intact, citing consistent leadership across projects like KotOR2, New Vegas, NWN2, and Stick of Truth.

Addressing the "Gutted Studio" Narrative

As news of the layoffs broke, online discourse suggested that Obsidian had lost the original writers and talent that defined its earlier work. Brandon Adler took to LinkedIn to push back against these claims, labeling them as misinformation.

"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 emphasized that the "through line" from Knights of the Old Republic 2 to the studio's current output is clear, noting that many in leadership positions are the same individuals who have been there for years.

A Difficult Week for Developers

While Adler defended the studio's internal culture and creative continuity, he acknowledged the personal toll of the recent restructuring. "This has been an extremely difficult week at Obsidian," he stated. "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."

Adler encouraged industry peers to consider hiring the affected staff, noting that the departing developers are among the best in the industry, both professionally and personally.

The Future of Fallout at Obsidian

Amid the restructuring, reports have emerged that the studio is working on a new Fallout title. While details remain limited, the project is reportedly being headed by Josh Sawyer, the director of 2010's Fallout: New Vegas. This development follows a period of transition for the studio, which recently released the acclaimed Pentiment.