Obsidian Entertainment loses 25% of staff: what does this mean for the future of RPGs?
Intelligence Summary
- Obsidian Entertainment, the studio behind Avowed and The Outer Worlds, loses 25% of its staff after recent Xbox layoffs.
Briefly summarized
- Around 25% of Obsidian Entertainment’s staff has been laid off, amounting to 60-70 employees.
- The layoffs affected multiple disciplines, including producers, artists, and writers.
- Despite the cuts, development on Grounded 2 and the DLC for The Outer Worlds 2 will continue.
GAME-scanner analysis
The layoffs at Obsidian Entertainment are the result of a broader restructuring within Xbox, which has cost a total of 3,200 jobs. This has led to a significant reduction in the studio’s workforce, which is known for its innovative RPGs such as Avowed and The Outer Worlds. The impact of these layoffs should not be underestimated, especially since Obsidian relies heavily on creative talent. With a smaller team, the studio now has to face the pressure of competition in the gaming industry, raising questions about the progress and quality of future projects.
What does this mean for players?
For gamers looking forward to new Obsidian releases, such as Avowed and the DLC for The Outer Worlds 2, there is reason for concern. Although the company has confirmed that work on these projects will continue, the reduced staff could affect the quality and timeline of the releases. Players may need to prepare for delays or changes in the development of their favorite titles, which could temper expectations for the upcoming releases.
Timeline
6 July 2026: The first wave of layoffs at Obsidian Entertainment takes place, affecting around 60-70 employees.