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Leaked Xbox Memo Reveals Obsidian’s Fate Under Bethesda
Polygon.com • • technology
Key Points:
- Xbox has faced significant challenges in 2026, including layoffs of 1,868 employees and divestment from studios like Double Fine, with a major reorganization merging several studios such as moving Halo under Activision.
- Obsidian Entertainment will now report to Bethesda Game Studios but will maintain its creative identity and operate as a separate studio, continuing collaboration on a new Fallout project.
- The reorganization aligns with Microsoft's shift to a "franchise-led model," focusing on existing series rather than new intellectual properties, potentially limiting Obsidian's experimental projects.
- Obsidian, known for diverse titles like Pillars of Eternity and The Outer Worlds, may now prioritize sequels and follow-ups to Bethesda and its own franchises amid Xbox's strategic reset.
- Bethesda’s Jill Braff emphasized that the changes are primarily structural, with no immediate roadmap alterations, highlighting ongoing communication and cooperation between studios to benefit players.
