Between Activision taking over Halo, Halo Studios being reduced to supporting current games, Ninja Theory potentially facing closure, and so on, Xbox has a lot going on. Of course, there’s also the reorganization, with studios like Obsidian Entertainment falling under Bethesda’s purview.
It would make sense, since they’re working on a new Fallout together, but given the studio’s layoffs last July, there are always fears it could face further cuts. In an email to employees obtained by Aftermath, Bethesda president Jill Braff called it “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.” Obsidian’s CEO Feargus Urquhart and other leadership will allegedly remain in charge, but now report to Braff.
“Bethesda Game Studios will continue to lead the Fallout franchise. Together, the teams will build on their longstanding relationship and the early work already underway on a new Fallout project, with more to share in the months ahead. This structure supports the franchise-led model we’ve been strengthening while keeping accountability for both the studio and the franchise clear,” she reportedly wrote.
Which may sound reassuring for those remaining, but keep in mind that Xbox is about “three-quarters” through its restructuring. Though it started with 1,600 layoffs, an additional 1,600 will follow throughout the fiscal year. Even if it’s a remote possibility, Obsidian may end up caught in the crossfire, especially after Avowed and The Outer Worlds 2 failed to meet expectations.
Besides the new Fallout, the studio is also working on Grounded 2 alongside Eidos Montreal. It’s currently in early access for Xbox Series X/S, PS5, and PC. As for Bethesda, it’s still developing The Elder Scrolls 6, with remasters of Fallout: New Vegas and Fallout 3 recently announced. Fallout 5 has also been cited as a “long-range destination,” so you can only imagine how far off it may be.
