What Obsidian's Move to Bethesda Means for Fallout Fans

For players, this means the new Fallout game from Obsidian is still in the works, but the studio's restructuring and layoffs may affect its other projects. The industry sees further consolidation unde…
For players, this means the new Fallout game from Obsidian is still in the works, but the studio's restructuring and layoffs may affect its other projects. The industry sees further consolidation unde…
Key points - Obsidian Entertainment now operates under Bethesda Softworks as part of Xbox's restructuring. - Matt Booty announced the change on September 22 via Xbox Wire. - Obsidian continues work on Grounded and a new Fallout project with Bethesda Game Studios. - Obsidian lost 25% of its staff in July, leading to an Avowed sequel cancellation. - More Xbox layoffs are reportedly planned before June 2027.
Timeline - July 2025: Obsidian loses 25% of staff; Avowed sequel canceled. - September 22, 2025: Matt Booty announces Obsidian will operate under Bethesda Softworks. - Before June 2027: More layoffs reportedly planned at Xbox.
FAQ
Q: Is Obsidian still making a new Fallout game? A: Yes, Obsidian is continuing its new Fallout project in collaboration with Bethesda Game Studios, as confirmed by Matt Booty.
Q: Will Obsidian be shut down? A: No, Obsidian will continue its current projects, including Grounded and the new Fallout game, under Bethesda's umbrella.
Q: What other changes did Xbox announce? A: Activision will develop the next Halo, Ninja Theory will likely close, and the two Forza studios have merged into one.
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