Obsidian Entertainment will now be managed by Bethesda, but the studio's creative character and current leadership structure will remain unchanged. Bethesda President Jill Braff confirmed that Obsidian CEO Feargus Urquhart and his leadership team will continue to run the studio.
This adjustment comes after Xbox announced a new round of layoffs and studio consolidations. Obsidian is one of the teams affected by these organizational changes, with notable titles including The Outer Worlds, Grounded, and Avowed.
In an email to employees, Braff stated that Obsidian's distinct creative identity and strengths will remain central to the studio and its projects. Following the restructuring, Obsidian will report directly to her, while the existing management team continues to oversee daily operations.
Bethesda Game Studios will continue to lead the Fallout series. Obsidian is already involved in a new Fallout project, with preliminary work currently underway, and both parties plan to share more information in the coming months.
Obsidian developed Fallout: New Vegas, but its portfolio is not limited to the Fallout series. Braff stated that the new management structure supports Bethesda's strengthened franchise-led model and clarifies the respective responsibilities of the studio and specific game franchises.
When Microsoft first announced the "reset" of its Xbox business in July this year, several Obsidian projects were canceled, reportedly including Avowed 2, which still had a small team working on it at the time. The email did not clarify whether Obsidian will continue to develop original IPs or primarily work on Bethesda-owned franchises.