Bethesda president Jill Braff says Obsidian Entertainment will retain its creative identity and existing leadership after Microsoft moved the studio under Bethesda as part of its latest Xbox restructuring.
Microsoft confirmed this week that Obsidian will now operate under Bethesda, while continuing its existing projects and collaborating with Bethesda Game Studios on a new Fallout project.
The move raised questions about how much independence Obsidian would retain, but Bethesda says the studio’s identity isn’t going away.
Obsidian Leadership Will Remain in Place
In her message to employees, Braff described the move as “primarily a change in reporting structure.”
“The creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work.”
Obsidian will report directly to Braff, while Bethesda Game Studios will remain responsible for leading the Fallout franchise.
The two studios are already collaborating on a new Fallout project.
“Together, the teams will build on their longstanding relationship and the early work already underway on a new Fallout project, with more to share in the months ahead.”
Braff said the new structure is intended to strengthen Microsoft’s franchise-led development model while maintaining clear responsibility for both Obsidian and Fallout.
What Comes Next for Obsidian?
Obsidian was already affected by Microsoft’s Xbox restructuring earlier this year, when several projects were reportedly canceled. One of those was said to be Avowed 2, although subsequent reports claimed a smaller team continued working on the project.
For now, Bethesda hasn’t indicated that Obsidian will exclusively develop Bethesda-owned franchises.
Braff said Obsidian has “extraordinary creative talent” and praised the studio's history of creating memorable games and experiences.
More information about the studio’s new Fallout project is expected in the coming months.
