Bethesda reassures staff after Obsidian Entertainment move

Bethesda head Jill Braff issued an internal memo to reassure staff following a major reorganization of Microsoft’s gaming division. As part of the restructuring, Obsidian Entertainment has been moved under the Bethesda umbrella. Braff emphasized that Obsidian will remain “distinct” and will not have its roadmap or focus reset, addressing concerns that the studio might be relegated to a mere support role for the Fallout franchise.

This move follows a broader “reset” of Xbox led by Asha Sharma, which has resulted in nearly 2,000 layoffs aimed at improving financial performance. The reorganization also saw Microsoft transfer several studios, including Rare and World’s Edge, to Activision, while Halo Studios underwent significant changes.

Regarding upcoming projects, Bethesda Game Studios confirmed it will continue to lead the Fallout franchise, while Obsidian remains responsible for its own upcoming Fallout title. Other projects in development include The Elder Scrolls 6, Fallout 5, and remasters of Fallout 3 and Fallout: New Vegas.