Obsidian Entertainment: layoffs and the future of RPGs
Intelligence Summary
- Obsidian Entertainment is facing layoffs and shifting development plans. What does this mean for its upcoming RPGs?
In short
- Obsidian Entertainment has recently had to lay off 50 employees, a significant blow to the studio.
- The studio is facing a challenging period with multiple titles, including Avowed and The Outer Worlds 2, set to release in the same calendar year.
- There are rumors that Xbox has changed its development plans, which could affect the future of the Fallout franchise.
GAME-scanner analysis
The recent layoffs at Obsidian Entertainment, which saw 50 employees lose their jobs, are a shocking development for the studio known for influential RPGs such as Knights of the Old Republic and Fallout: New Vegas. Brandon Adler, the game director of The Outer Worlds 2, has publicly acknowledged the difficulties the studio is going through. This raises questions about the studio’s stability and future, especially as it prepares to launch multiple titles in a short period of time.
Rumors that Xbox has shifted its development focus from a sequel to Avowed to a new Fallout game could also affect the direction of Obsidian’s projects. That could mean the studio has to adapt to new priorities, potentially slowing down the development of its own IPs.
What does this mean for players?
For gamers looking forward to Obsidian’s upcoming titles, such as The Outer Worlds 2 and Avowed, these changes are concerning. Uncertainty around the studio’s future and the impact of the layoffs could affect the quality and timeline of these games. Players may wonder whether Obsidian’s vision and creativity can be preserved amid all these changes.
Timeline
July 2026: Obsidian Entertainment announces that 50 employees have been laid off as a result of recent restructuring within Xbox.
July 2026: Brandon Adler confirms it has been a difficult week for the studio amid speculation about its future.