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Obsidian moves under Bethesda in Xbox's major restructuring

Microsoft eliminates 268 roles and reorganizes studios as part of ongoing Xbox reset, moving Obsidian to work on a new Fallout game.

newest coverage 1d agosummary written 1d ago8 pieces NewswiresMastodonGoogle NewsX

What to know

  • Microsoft eliminated 268 roles across Xbox studios and is moving Obsidian Entertainment under Bethesda management to develop a new Fallout game.
  • The restructuring reflects a failed Game Pass expansion strategy; Microsoft is now focusing resources on fewer major franchises including Diablo, The Elder Scrolls, and Fallout.
  • Studio divestitures are underway: Compulsion, Double Fine, and Undead Labs are independent again; Ninja Theory closure is under consultation; Arkane consultation continues through year-end.
  • Obsidian will continue work on existing projects like Grounded, though plans for an Avowed sequel were not mentioned by Microsoft's leadership.

“The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.”

Matt Booty, Microsoft chief content officer · RPG Site ↗ · Sep 21

Matt Booty Microsoft chief content officerObsidian Entertainment RPG studioMicrosoft Parent companyBethesda Game Studios Studio

Obsidian moves under Bethesda in Xbox's major restructuring
Kotaku

How it unfolded 1 development · click the chart to see its coverage articles

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  1. 1

    Microsoft refocuses on fewer major franchises after failed Game Pass strategy

    The restructuring reflects a broader strategic shift away from the subscription-service expansion that characterized the previous decade. Microsoft is now concentrating resources on major franchises like Diablo, The Elder Scrolls, and Fallout, with Fallout remasters and Fallout 5 in the pipeline.

    “Obsidian's work on its current projects, including Grounded, would continue, though he did not make any mention of the studio's other franchises, including an Avowed sequel.”
    — Matt Booty, Microsoft chief content officer · source

    • Hundreds more layoffs so that's brutal!!!! Beyond that, I'm....curious about obsidian moving under Bethesda. I unfortunately don't know enough about the industry to have any real thoughts about that

      @phaseknight_X1d agoview on X ↗
  2. background

    Studio divestitures and closures part of restructuring — Compulsion Games, Double Fine, and Undead Labs are returning to independent management with their IP and back catalogs. Two separate agreements for Ninja Theory fell through and Microsoft will begin consultation on a proposed closure. Consultation with Arkane Studios remains underway.

  3. background

    Obsidian Entertainment moves under Bethesda to work on new Fallout game — Obsidian Entertainment is being reorganized under Bethesda Game Studios as part of Microsoft's effort to strengthen franchises by operating fewer business units. The studio will work on an upcoming Fallout game while continuing development on projects like Grounded.

  4. background

    Microsoft announces Xbox restructuring with 268 layoffs — Microsoft chief content officer Matt Booty announced a major restructuring eliminating 268 roles across Halo Studios, other first-party studios, and XGS management. The changes are part of the Xbox reset announced earlier in the year.

Also covered reported alongside — the timeline has no entry for these yet

  1. 3 outlets Obsidian's New Fallout Game Is Still Coming, As The Studio Moves Under Bethesda's Umbrella

    first by GameSpot, 1d ago · also Scified, Kotaku

    2 more headlines

and 1 smaller piece