Obsidian Entertainment
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Something for the Weekend – 11/07/26
This week's news includes Microsoft confirming significant layoffs affecting multiple studios, Palworld's 1.0 launch with a large patch, and matchmaking issues for Black Ops players on PlayStation 4 and 5. God of War Laufey is slated for a 2027 release, and a petition to save physical games has garnered over 285,000 signatures.
Avowed 2 Is Still Being Worked On, Reaffirms Jason Schreier
Despite reports of cancellation, a small team at Obsidian Entertainment is still working on Avowed 2. The project is being kept alive while the studio awaits further assignments on Fallout projects, according to Jason Schreier.
Summary: what's happening at Xbox?
Xbox announced a major restructuring involving 3,200 job cuts, with 1,600 immediate layoffs, primarily affecting ZeniMax studios like Bethesda and id Software. Several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, are being sold off or spun out as independent entities. This move aims to refocus on high-earning franchises and improve profit margins, impacting the development of upcoming titles like The Elder Scrolls 6 and potentially State of Decay 3.
Xbox After The Layoffs: Studios Left And What They’re Making
Xbox has undergone significant restructuring, including layoffs and the divestment of five studios, as it aims to increase profitability and focus on major intellectual properties. This shake-up impacts numerous development teams and projects across Xbox Game Studios, Activision, Blizzard, and Bethesda, with a renewed focus on core franchises and a shift in business strategies like the exclusion of Call of Duty from Xbox Game Pass day-one launches.
Xbox needs to make a choice, says former PlayStation leader Shawn Layden: be a publisher or a platform, but you can't be both
Former PlayStation leader Shawn Layden argues that Xbox must choose between being a major game publisher or a platform holder, stating it cannot effectively be both. He highlights the need for exclusive content to support a platform, contrasting it with the multiplatform approach required for a top publisher, a dilemma exacerbated by recent Xbox layoffs and strategic shifts.
Can a top-down, focused software strategy save Xbox? | Opinion
Xbox has undergone significant layoffs and studio closures, impacting 20% of its workforce and five internal studios, including Compulsion Games and Double Fine. This strategic shift, led by Asha Sharma, aims to address financial issues and improve first-party development, though the article questions the effectiveness of these measures and criticizes the company's past spending and treatment of developers.
Own goal specialist Xbox rifles another into the roof of the net - Patch Notes #60
Xbox announced significant layoffs, impacting approximately 3,200 employees across various studios including id Software, ZeniMax Online Studios, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. Xbox boss Asha Sharma cited a need to eliminate management layers and create a flatter organization, though many of the affected employees are senior staff integral to game production. This marks the fifth major round of layoffs at Xbox in three years, with unions like CWA Canada criticizing Microsoft's handling of the situation.
Avowed 2 Has Not Been Cancelled Following Layoffs at Obsidian – Rumor
Despite recent layoffs at Obsidian Entertainment and rumors of cancellation, former co-founder Chris Avellone has stated that Avowed 2 is still in development and the studio hopes to "re-pitch" the concept. While some projects are being re-evaluated, expansions for The Outer Worlds 2 are still planned, and Grounded is continuing development.
Asha Sharma joins Federal Reserve advisory task force days after laying off thousands at Xbox
Xbox CEO Asha Sharma has been appointed to a new US Federal Reserve task force focused on productivity and jobs, specifically examining the economic impact of artificial intelligence. This appointment follows Xbox's announcement of significant layoffs affecting thousands of employees and several game studios, including Double Fine and Ninja Theory.
What will another Obsidian Fallout game even look like all these years on? Here's my attempt to read the radioactive tea leaves
Following reports of Obsidian Entertainment being redirected to work on a new Fallout game, this article speculates on what such a title might look like. It considers how the studio could innovate within the series, potentially by exploring new settings and gameplay mechanics, while acknowledging the influence of the recent Fallout TV show and other modern RPGs.
"We were already running a tight ship": Elder Scrolls 6 devs are worried about Xbox's layoffs causing even more delays to the long-awaited RPG
Bethesda developers are concerned that recent layoffs at Microsoft and Xbox will cause further delays for The Elder Scrolls 6. Staff report that the cuts have negatively impacted morale and may lead to longer development cycles due to the need for onboarding new or contract labor. Developers fear this will necessitate crunch time to meet deadlines for the highly anticipated RPG.
The Elder Scrolls 6 Devs Fear “More Delays” After Layoffs Have “Crushing Effect On Morale”
Developers at Bethesda Game Studios are concerned that recent Microsoft layoffs could lead to significant delays for The Elder Scrolls 6, citing a "crushing effect on morale." These cuts, impacting various disciplines, raise fears of project timelines being pushed back and potential reliance on contract labor. The studio is also reportedly planning Fallout 5 after The Elder Scrolls 6.
New Perfect Dark, Co-Op Doom Were Reportedly In The Works At Id Software Before Mass Layoffs
Mass layoffs have significantly impacted id Software, with reports suggesting projects like a new Perfect Dark game, a co-op Doom experience, and a John Wick-inspired title called Fury were in development. Xbox CEO Asha Sharma's 'reset plan' led to the dismissal of over half of id Software's staff, potentially affecting the future of the id Tech engine and other studios like Obsidian Entertainment and ZeniMax Online Studios.
Xbox Game Pass Hidden Gems: 20 Games Worth Playing Right Now (2026) | TAG
This guide highlights 20 under-the-radar games available on Xbox Game Pass, categorized by their time commitment. It focuses on titles that are either new, forgotten, or obscure, offering recommendations for various playstyles and schedules. The article emphasizes that these games are worth owning even if they leave the service.
Fallout: New Vegas studio Obsidian reportedly moved onto a new Fallout game by Xbox, but at the cost of a sequel to Avowed
Xbox has reportedly shifted Obsidian Entertainment's focus to a new Fallout game following significant layoffs at the studio. This move has led to the cancellation of multiple projects, including a sequel to the RPG Avowed. Studio design director Josh Sawyer, who previously directed Fallout: New Vegas, is expected to lead the new Fallout title.
Obsidian Has Cancelled Multiple Projects To Make New Fallout, Per Report
According to a report, Microsoft has canceled multiple projects at Obsidian Entertainment to have the studio develop a new Fallout game, with Josh Sawyer leading the design. This decision comes amidst significant layoffs at Microsoft and Obsidian, and the cancellation of a planned sequel to Avowed. The new Fallout title will be the first mainline entry in the series since Fallout 4 in 2015.
The makers of New Vegas are working on a new Fallout game
Obsidian Entertainment is reportedly developing a new Fallout game, with Fallout: New Vegas lead designer Joshua Sawyer at the helm. This shift comes after the cancellation of an Avowed sequel as part of Microsoft's broader Xbox restructuring. While a small team will continue to support Avowed, the new Fallout project is now the studio's priority.
Doom devs id Software were reportedly kicking around ideas for a new Perfect Dark, a John Wick-inspired game, and multiplayer demonslaying prior to layoffs
Following recent layoffs at id Software, the studio was reportedly exploring ideas for new games, including a new Perfect Dark title and a John Wick-inspired action game codenamed Fury. These pitches were being considered after the completion of Doom: The Dark Ages' Revelations DLC, though it remains uncertain if id Software has sufficient staff to pursue these projects. Other concepts included a wild west robot survival game and further Doom multiplayer or DLC content.
Another Fallout RPG was in development at Obsidian Entertainment before Bethesda pulled the plug "a while…
Obsidian Entertainment was reportedly working on a new Fallout game that Bethesda ultimately canceled. According to former developer Chris Avellone, a project directed by Josh Sawyer was intended to be a Fallout title before Bethesda intervened. The article also mentions that an Avowed sequel, previously rumored to be scrapped for a Fallout game, is still in development.
New Fallout game in development by makers of New Vegas but at a cost
Xbox has commissioned Obsidian Entertainment, the studio behind Fallout: New Vegas, to develop a new Fallout game, led by project director Josh Sawyer. This decision comes after Obsidian experienced significant layoffs, with reports suggesting that previous projects were cancelled to prioritize this new Fallout title. The move aims to capitalize on the franchise's popularity, potentially releasing before Bethesda's Fallout 5.
