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As Xbox continues its reset and lays off nearly 300 staff, the company announced that some of its subsidiaries have been shaken up as well. This includes Obsidian Entertainment, which will now operate under Bethesda Softworks.
On September 22, Xbox chief content officer and executive vice president Matt Booty posted on Xbox’s website, outlining a new structure that sees the Bethesda business unit now include Obsidian.
“Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios,” Booty wrote on Xbox Wire.
This language doesn’t appear to suggest that Bethesda gobbled up Obsidian to take ownership over the studio or anything. Instead, it sounds a little closer to the working relationship Bethesda–or rather, the studio’s parent company, ZeniMax Media–has with Doom maker id Software.
Obsidian Entertainment–which developed copious RPGs from Neverwinter Nights 2 to Pillars of Eternity to Star Wars Knights of the Old Republic II: The Sith Lords to The Outer Worlds—lost 25% of its staff in July after Xbox’s first major reset. This resulted in the Avowed sequel being killed and the acclaimed RPG studio shifting its focus to

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