As Xbox undergoes a series of adjustments, Bethesda will take over the management of Obsidian Entertainment. Michael "Cromwelp" Douse, Publishing Director at Larian Studios for Baldur's Gate 3, subsequently expressed his concerns, suggesting that this arrangement could place Obsidian under the management of a competitor.
In a post on social media, Douse stated that he finds it hard to imagine a studio that once enjoyed independent autonomy suddenly finding itself working under a competitor, noting that such a situation would likely feel unpleasant.
Some have raised objections, arguing that Bethesda and Obsidian have long been part of Xbox and can no longer be simply viewed as competitors. Douse responded by clarifying that he was referring to the situation prior to Obsidian's acquisition; even when two companies belong to the same parent company, competition between them can still exist.
Bethesda and Obsidian have previously collaborated. The two companies announced a new, as-yet-unrevealed Fallout collaborative project about two months ago. At that time, Bethesda also confirmed that Fallout 5 is in pre-production and announced remastered versions of Fallout 3 and Fallout: New Vegas.
This shift in management authority also comes as Xbox continues its layoffs. Microsoft plans to cut 3,200 jobs at Xbox, with both Bethesda and Obsidian previously affected; reports indicate that approximately 25% of Obsidian's staff were impacted. Following an earlier layoff of 1,600 employees earlier this year, an additional 268 cuts from the 3,200-person plan were announced on September 22.
Obsidian's management changes and news of a new round of layoffs were announced on the same day, providing the real-world context for Douse's concerns. Currently, the Fallout project being developed in collaboration between Bethesda and Obsidian has not yet revealed specific details.