Updated
Updated · Kotaku · Jul 11
Xbox Cuts 50 Obsidian Staff, Shifts Studio Toward New Fallout Game
Updated
Updated · Kotaku · Jul 11

Xbox Cuts 50 Obsidian Staff, Shifts Studio Toward New Fallout Game

3 articles · Updated · Kotaku · Jul 11

Summary

  • 50 Obsidian employees were cut in Xbox’s latest gaming layoffs, and the studio has reportedly pivoted from prioritizing an Avowed sequel to a new Fallout project.
  • 1,600 jobs have already been eliminated across Microsoft’s gaming division, with roughly 1,600 more reportedly coming as Xbox concentrates resources on its biggest franchises.
  • Bloomberg reported Obsidian was already deep into Avowed 2, with work continuing for now, while studio design director Josh Sawyer is expected to lead the Fallout title.
  • The shift marks a retreat from Xbox’s Game Pass-era push for diverse new projects, as CEO Asha Sharma reportedly presses to speed up the next Halo and Fallout releases.
  • Obsidian’s The Outer Worlds 2 director Brandon Adler said the week had been "extremely difficult" and rejected online claims that the studio’s core creative DNA had changed.

Insights

Obsidian is making a new Fallout, but is the 'unsanctioned' Avowed sequel the studio's real future?
With massive layoffs and studio sales, is Microsoft admitting its Game Pass acquisition strategy has failed?