Bethesda Promises Obsidian Will Keep Its Identity After Studio Reorganization
Bethesda president Jill Braff assured staff that Obsidian Entertainment will remain a distinct creative force after moving under Bethesda's control as part of Xbox's broader restructuring. The studio will continue working on a new Fallout project with
Bethesda president Jill Braff has moved to reassure staff and fans that Obsidian Entertainment will retain its creative independence after the studio was placed under Bethesda's umbrella during Xbox's ongoing organizational restructuring.
In an email to employees, Braff described the change as "primarily a change in reporting structure" rather than a fundamental shift in how Obsidian operates. She emphasized that "the creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work."
Obsidian CEO Feargus Urquhart and the studio's leadership team will continue to lead the developer, with the studio now reporting directly to Braff. Bethesda Game Studios will continue to direct the Fallout franchise overall. The two teams will collaborate on a new Fallout project already in early development, building on their previous partnership on Fallout: New Vegas.
Braff stated that the restructuring "supports the franchise-led model we've been strengthening while keeping accountability for both the studio and the franchise clear." She also clarified that the reorganization does not mean resetting development roadmaps or asking teams to redirect their current focus.
The move came as part of Xbox's sweeping restructuring announced on September 22. The same announcement included 268 additional job cuts across the division, the transfer of Rare and the Halo franchise to Activision's control, and the proposed closure of Ninja Theory. Earlier layoffs in July saw Obsidian lose approximately 25 percent of its workforce, around 52 employees.
Braff acknowledged Obsidian's track record, noting the studio's "extraordinary creative talent, deep expertise, and a long history of creating memorable games and experiences." The consolidation under Bethesda reflects Xbox's shift toward a franchise-led development model focused on the company's flagship properties, including The Elder Scrolls, Halo, and Fallout.
More details about the new Fallout collaboration are expected in the coming months.
Sources
- Insider GamingEstablished publication · recorded Sep 24, 2026Bethesda President Says Obsidian’s “Creative Identity” Will Remain
- GamesIndustry.bizEstablished publication · recorded Sep 24, 2026Bethesda boss confirms Obsidian will remain a "distinct" team
- EurogamerEstablished publication · recorded Sep 24, 2026Obsidian's "creative identity and strengths" will remain intact, promises Bethesda, as it takes control of Fallout: New Vegas studio
- Game DeveloperEstablished publication · recorded Sep 24, 2026Report: Bethesda president tells Obsidian staff it won't lose 'creative identity' after merge
- PC GamerEstablished publication · recorded Sep 24, 2026Bethesda says that Obsidian's 'creative identity' will be preserved, just months after multiple projects were cancelled and it was told to make a Fallout game
- Rock Paper ShotgunEstablished publication · recorded Sep 24, 2026Bethesda say new underlings Obsidian will retain their "distinct" creative identity, despite no longer being as free to work on their own creatively distinct series
- PlayStation UniverseSecondary publication · recorded Sep 24, 2026Obsidian Is Now Part Of Bethesda But Will Reportedly Keep Its ‘Creativity Identity’
- 80 LevelSecondary publication · recorded Sep 25, 2026Obsidian Will Preserve Its "Creative Identity," Bethesda President Says
- Video Games ChronicleEstablished publication · recorded Sep 25, 2026Bethesda president tells Obsidian staff that the studio will keep its ‘creative identity’ after its move
- EurogamerEstablished publication · recorded Sep 25, 2026Skyrim loremaster says The Elder Scrolls never got a Fallout: New Vegas-style game because Bethesda is "very protective" over its golden goose