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Bethesda head reassures staff Obsidian retains independence under reorganization

Jill Braff's memo emphasizes Obsidian remains a distinct studio despite being moved under Bethesda as part of Xbox's major restructuring.

newest coverage 8h agosummary written 1h ago5 pieces NewswiresGoogle News

What to know

  • Microsoft cut 268 more jobs and reorganized studios on Sept. 22 as part of new CEO Asha Sharma's 'reset,' shifting Xbox toward a franchise-led financial model focused on existing IP.
  • Obsidian Entertainment now reports to Bethesda Game Studios, prompting concern that the New Vegas studio would become a Fallout support team—a worry Bethesda head Jill Braff directly addressed in her memo.
  • Braff emphasized the move is structural only: Obsidian retains its leadership under Feargus Urquhart, creative identity, and independence while collaborating with BGS on a new Fallout project.
  • The reorganization reflects Xbox's broader pivot away from new IP; Obsidian's history of varied titles like Pentiment, The Outer Worlds, and Pillars of Eternity may now be constrained to sequels.

“I've had the opportunity to get to know Feargus Urquhart and his team over the past six years, and I have great respect for what they've built.”

Jill Braff, Bethesda Game Studios head · IGN ↗

Jill Braff Bethesda Game Studios headFeargus Urquhart Obsidian Entertainment leadershipAsha SharmaAsha Sharma Xbox CEOMicrosoft Parent company

Bethesda head reassures staff Obsidian retains independence under reorganization
Polygon

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

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  1. 1

    Jill Braff issues memo reassuring Obsidian staff of studio autonomy

    Bethesda Game Studios head Jill Braff sent a memo to staff viewed by IGN emphasizing the reorganization is 'primarily a change in reporting structure' and that Obsidian will retain its creative identity, leadership under Feargus Urquhart, and distinct strengths. She confirmed BGS will continue to lead the Fallout franchise while Obsidian works on its own Fallout project.

    “Today's announcement is primarily a change in reporting structure. The creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work.”
    — Jill Braff
    1. 2 outlets Bethesda Boss Issues Memo to Staff After Xbox Moves Obsidian Into the Fallout Company

      first by IGN, 11h ago · also Polygon

      1 more headline
  2. background

    Microsoft announces second wave of 268 layoffs and restructures studios — A second round of cuts affected an additional 268 developers and included major reorganizations: Halo Studios was gutted and its next mainline game handed to Rare (Sea of Thieves developer), which moved under Activision along with World's Edge (Age of Empires developer). Obsidian Entertainment was moved to report under Bethesda.

  3. background

    Microsoft announces 1,600 layoffs and studio divestitures — Xbox announced a major round of job cuts and divested from several studios including Double Fine, signaling financial challenges ahead.