Obsidian Entertainment Layoffs Hit 52 as Avowed 2 Cancelled

Microsoft’s recent restructuring of its Xbox division has triggered significant operational changes across its first-party studios, including layoffs and project cancellations. This shift forces players and industry observers to reassess the future of several long-running franchises and the studios behind them. For fans of Obsidian Entertainment, the changes raise immediate questions about the stability of the team and the continuity of their upcoming titles.

Studio director defends team DNA as Microsoft restructuring reshapes development pipeline

Obsidian Entertainment, based in California, is among the studios navigating this corporate reset. The studio is known for role-playing games such as Fallout: New Vegas and Knights of the Old Republic II. Director Brandon Adler recently addressed the public discourse surrounding the studio’s current direction and legacy. He emphasized that the core leadership and creative DNA remain consistent with the team’s past successful projects.

A California WARN notice confirms that Obsidian is reducing its workforce by 52 employees. This reduction includes 43 in-state workers and nine remote staff members. The studio is also adjusting its development pipeline to align with Microsoft’s new strategic focus. Recent reports indicate that a planned sequel to Avowed has been cancelled. The team will now concentrate on a new Fallout game instead.

Adler criticized online commentators who spread misinformation about the studio’s identity and workforce. He stated that many critics lack insight into game development processes and the contributions of previous teams. He urged readers to disregard claims that the studio has lost its original character. The studio maintains that its fundamental approach to storytelling and design has not changed despite the layoffs.

The restructuring marks a definitive shift in Obsidian’s project lineup and workforce size. The cancellation of Avowed 2 and the reduction of 52 jobs are confirmed operational changes. The studio continues to develop a new Fallout title under Microsoft’s renewed focus on the franchise. Players can expect the team to maintain its historical design standards while operating at a smaller scale.

Source: VideoGameChronicles