- Obsidian is moving under Bethesda as part of Xbox's latest studio restructuring.
- Obsidian will continue working on Grounded and its new Fallout project alongside Bethesda Game Studios.
- The restructuring also moves Rare under Activision, brings Playground and Turn 10 together, and includes 268 job cuts across Xbox.
Xbox is changing how several of its studios are organized, with Obsidian moving under Bethesda as part of the company’s latest restructuring. The move puts the studio behind Avowed and The Outer Worlds alongside Bethesda Game Studios as Obsidian continues work on its upcoming Fallout project.
The change was shared by Xbox chief content officer Matt Booty through an official email announcement on September 22. He said the company is reorganizing its studios to operate through “fewer business units” while aligning teams that already work closely together.
Here’s what the Xbox COO said about Obsidian’s future,
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.
What Obsidian Moving Under Bethesda Means for Xbox?
Yes, you heard that right. Bethesda will now expand and take Obsidian under its wing. But the studio will continue working on its existing projects. That includes Grounded and the new Fallout project being developed in collaboration with Bethesda Game Studios.
The announcement does not indicate that Obsidian itself is being closed or absorbed into Bethesda Game Studios. Instead, the change concerns how the studio is organized within Xbox’s wider publishing structure.
The move is part of a much larger reshuffle across Xbox. Activision will take responsibility for Rare and World’s Edge, while a new Activision team will develop the next Halo game. But that’s not all.
Playground Games and Turn 10 are also being merged. They are being brought together as one studio focused on Forza and Fable. Xbox is also continuing changes to several studios that are leaving its ownership structure. Compulsion Games and Double Fine have returned to independent management.
Undead Labs has transitioned to new ownership with plans to release State of Decay 3 day one on Game Pass. Unfortunately, Ninja Theory may shut down due to lack of buyers.
The broader restructuring also includes 268 eliminated roles across Halo Studios, other first-party studios, and Xbox Game Studios’ management and central functions. However, the studio changes and layoffs are separate parts of the wider restructuring announced by Microsoft.
The key takeaway from Obsidian moving under Bethesda is that the studio will continue its current work while operating within a new Xbox structure. Its Fallout project remains in development with Bethesda Game Studios.
