Obsidian Entertainment to fall under Bethesda's authority following Xbox layoffs
NewsObsidian will continue its current projects, ‘including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.’ TJ Denzer September 22, 2026 9:36 AM Bethesda 1 In the midst of…
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Obsidian will continue its current projects, ‘including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.’
TJ Denzer September 22, 2026 9:36 AM Bethesda 1In the midst of fresh Xbox layoffs announced this week, the gaming giant also announced major organizational changes, which include consolidating several studios. Obsidian Entertainment, in particular, is set to fall under the purview of Bethesda. Obsidian will still continue its ongoing projects, including Grounded and new Fallout games with Bethesda Game Studios.
Xbox Chief Content Officer Matt Booty shared details of Obsidian and Bethesda’s consolidation on the Xbox Wire post disclosing layoffs. Here’s what Booty had to say about what’s going at with Obsidian:
“Remit” seems to imply that Bethesda will pick up responsibility and control of Obsidian. During Xbox’s previous mass layoffs, it was rumored that Obsidian would be pivoting to Fallout projects, but that was later confirmed by Bethesda itself. Fallout 5 is in pre-production and Obsidian is also preparing a remaster of Fallout: New Vegas. That said, while Obsidian will continue to maintain Grounded, nothing is said on the state of the Pillars of Eternity universe or Obsidian’s other original IP.
As we wait to see what comes of these changes, stay tuned to the Obsidian Entertainment topic for more updates.
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TJ Denzer Senior News EditorTJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at [email protected] and also find him on BlueSky @JohnnyChugs.
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