Obsidian is now under Bethesda as a part of Microsoft's new round of Xbox restructuring and layoffs
Covered by 2 sources · 2 articles
Microsoft's Xbox division continues restructuring under leadership changes, consolidating some studios while cutting others. Obsidian Entertainment, the developer behind Pillars of Eternity and The Outer Worlds, is being folded into Bethesda's operations as part of a broader organizational shift. The move pairs Obsidian with Bethesda for ongoing projects including the survival game Grounded and development work on a new Fallout title. Simultaneously, the Xbox "reset" includes additional layoffs affecting the Halo franchise and the closure of Ninja Theory, signaling Microsoft's effort to streamline its gaming portfolio.
- Obsidian Entertainment is now operating under Bethesda's umbrella as Microsoft consolidates studio operations.
- The restructuring includes layoffs across Halo and the shutdown of Ninja Theory alongside the Obsidian consolidation.
- Obsidian will continue work on Grounded and contribute to a new Fallout game within the Bethesda structure.
Microsoft's studio reorganization signals how it's reshaping Xbox's output, potentially affecting which franchises get priority resources and how quickly players see new releases.
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