Xbox reportedly laid off approximately 25 percent of the staff at Obsidian Entertainment, according to reports from The Verge and IGN.
Xbox Workforce Reductions at Obsidian Entertainment
Reports from The Verge and IGN indicate that Obsidian Entertainment, the developer behind Fallout: New Vegas and The Outer Worlds, lost roughly a quarter of its employees in a recent wave of Xbox-led layoffs.
Staff members told IGN they are unsure how the studio will continue to execute its current roadmap given the scale of the departures.
Strategic Shift Toward Major Franchises
Rock Paper Shotgun reports that Microsoft is pushing for a heavier emphasis on established intellectual properties, specifically citing Fallout.
Conflicting Reports on Studio Closure
Eurogamer.net noted emerging reports that Obsidian was negotiating with Xbox to avoid total closure. However, this was countered by reports from Pure Xbox, where a journalist claimed that Xbox intends to "keep" Obsidian despite the rumors of a shutdown.
Obsidian’s Project Pipeline and Risks
The primary concern for the remaining staff is the "huge list of projects" currently in development.
| Source | Reported Status |
|---|---|
| The Verge / IGN | ~25% staff reduction; internal uncertainty. |
| Eurogamer | Negotiations to avoid total studio closure. |
| Pure Xbox | Claims Xbox is keeping the studio active. |
Industry Context: Microsoft’s Gaming Consolidation
Frequently Asked Questions
Is Obsidian Entertainment closing?
While Eurogamer reported negotiations to avoid closure, other sources like Pure Xbox indicate the studio will remain open, albeit with a smaller staff.
How many people were laid off?
Reports from The Verge and IGN state that approximately 25 percent of the staff were affected.
Why is Xbox cutting staff at Obsidian?
According to Rock Paper Shotgun, the move is tied to a strategic push to focus on major series like Fallout and general corporate cost-cutting.