Bethesda boss Jill Braff has written to all staff to confirm that Grounded developer Obsidian Entertainment will remain a “distinct” team, retaining its existing leadership structure.
Yesterday (September 22), Xbox announced a sweeping reorganisation of its internal studios. It moved Obsidian under Bethesda, transferred legendary UK studio Rare and ownership of the Halo franchise to Activision, proposed the closure of Ninja Theory, and confirmed a further 268 job cuts. The news was detailed via an Xbox Wire post, following earlier reports of planned layoffs.
In response, Braff circulated a memo to staff describing the Obsidian move as “primarily a change in reporting structure,” and assuring developers that the “creative identity and strengths that make Obsidian distinct will remain at the core” of the studio.
Here’s the email in full, as obtained by IGN:
Hi everyone,
Following the note from Matt [Booty], I wanted to share more on today’s news and what it means for our collective teams.
I’ve had the opportunity to get to know Feargus Urquhart and his team over the past six years, and I have great respect for what they’ve built. Obsidian has extraordinary creative talent, deep expertise, and a long history of creating memorable games and experiences. I’m looking forward to working more closely with them.
Today’s announcement is 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.
Feargus and the Obsidian leadership team will continue to lead Obsidian, with the studio reporting to me. Bethesda Game Studios will continue to lead the Fallout franchise.
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. This structure supports the franchise-led model we’ve been strengthening while keeping accountability for both the studio and the franchise clear.
I also recognize that employees across our studios, publishing, and business teams will have questions about what this means for our current priorities, roadmap, and responsibilities. To be clear, we’re not resetting our roadmap or asking teams to change what they’re focused on. We’ll take the time to understand how teams can best support one another, and where closer partnership can benefit our players and fans. We’ll continue communicating as we progress.
I’m looking forward to spending more time with the Obsidian team and building on the strong foundation already in place across our organizations.
Welcome Feargus and team – more soon!
Jill
Obsidian was acquired by Microsoft in 2018.