Grounded
News, coverage and analysis tracking Grounded across the outlets.
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The Outer Worlds and Fallout New Vegas studio Obsidian is reportedly losing a quarter of its staff in Xbox layoffs
Obsidian Entertainment, the studio behind The Outer Worlds and Fallout New Vegas, is reportedly laying off approximately a quarter of its staff, around 60-70 employees. These cuts are part of broader layoffs at Xbox, which impacted 3200 jobs across various Microsoft-owned studios. The layoffs affect multiple disciplines, including senior talent, and come as Obsidian continues work on Grounded 2 and The Outer Worlds 2 DLC.
Report – Xbox cuts around 25% of Obsidian staff
Xbox has initiated significant layoffs across its studios, with Obsidian Entertainment reportedly losing around 25% of its staff, impacting producers, artists, designers, and more. This is part of Microsoft's larger plan to lay off 3,200 employees by June 2027, though Blizzard Entertainment teams have been spared for now. The restructuring aims to shift focus away from smaller acquired studios, but the arbitrary nature of the cuts is causing concern over lost expertise.
Report: Obsidian losing around one quarter of its staff to 'Xbox reset'
Obsidian Entertainment has reportedly laid off approximately one quarter of its staff, impacting 60-70 employees as part of a larger 'Xbox reset'. The cuts affect various departments, including senior talent and the art director for The Outer Worlds. This follows a broader announcement of 3200 layoffs at Xbox, with leadership citing a need to course-correct after ambitious bets on Game Pass and multi-platform strategies did not yield expected results.
The Outer Worlds 2, Avowed Studio Hit by Layoffs, Affecting 25 Percent of Employees – Rumor
Obsidian Entertainment has reportedly laid off 60 to 70 employees, approximately 25 percent of its staff, including The Outer Worlds 2 art director Daniel Alpert. Despite these layoffs, the studio continues development on Grounded and story DLC for The Outer Worlds 2, while also working on Avowed. Studio head Feargus Urquhart clarified that neither Avowed nor The Outer Worlds 2 were considered 'disasters' despite not meeting sales expectations.
Obsidian was also hit by "the Microsoft sacrificial rituals," says laid-off RPG veteran who previously worked…
Obsidian Entertainment has reportedly been affected by recent Xbox layoffs, with narrative designer Jay Turner and other developers confirming their departure. These cuts are part of a larger "reset" by Microsoft, which aims to reduce its workforce by 3,200 by fiscal year 2027. Reports suggest around 25% of Obsidian's staff, approximately 60-70 individuals, were impacted.
Even Obsidian couldn't escape the Xbox cuts, with losses ranging from a 21-year veteran artist to an engineer…
Obsidian Entertainment has experienced layoffs, affecting employees including a 21-year veteran artist and a recent engineer. This marks the first time the studio has been impacted by the recent waves of job cuts at Microsoft's Xbox division. The exact number of affected employees is between nine and 49, falling below the threshold that would trigger a WARN Act notice.
Obsidian decided to do Grounded 2 once it settled on creating bug mounts
Obsidian Entertainment decided to develop Grounded 2 because the original game's design did not support the new bug mount feature. The sequel is built from the ground up to properly utilize this system, requiring a revamped world. Grounded 2 also drops support for PlayStation 4 and Xbox One to focus on PlayStation 5, Xbox Series X/S, and PC, allowing for technological advancements.
Obsidian reportedly safe from Xbox studio closures despite fears the RPG powerhouse was in negotiations to avoid…
Despite earlier reports suggesting Obsidian Entertainment was negotiating to avoid closure, Bloomberg reporter Jason Schreier has confirmed the RPG developer is safe. The news comes amid widespread fears of mass layoffs and studio shutdowns within Xbox's gaming division.
Xbox May Shut Down Obsidian Entertainment, Too
New reports indicate that Xbox is considering shutting down or selling Obsidian Entertainment, the studio behind games like Avowed and Fallout: New Vegas. This potential closure is part of a larger plan by Xbox to reallocate funds towards its major franchises, potentially affecting other subsidiaries like Compulsion Games, Double Fine, Ninja Theory, and Undead Labs.
The Outer Worlds, Avowed Developer “Deep in Negotiation” With Xbox to Avoid Closure – Rumor
Reports suggest that Xbox is in negotiations with Obsidian Entertainment to prevent its closure, alongside other studios like Arkane and Ninja Theory. This comes after The Outer Worlds 2 and Avowed reportedly failed to meet Xbox's sales expectations. The fate of these studios, including Obsidian, is expected to be revealed around July 6th.
PlayStation Store Update Worldwide June 30, 2026
Sony's PlayStation Store has received its weekly update, adding new content for PlayStation 4, PlayStation 5, and PlayStation VR owners. This week's PlayStation Plus Essential lineup includes Grounded, Nickelodeon All-Star Brawl 2, and Warhammer 40,000: Darktide.
"Baldur's Gate 3 seems to have done it pretty well," but don't expect Obsidian's next story-based RPG to launch in early access, Grounded 2 lead suggests
Obsidian Entertainment's Grounded 2 director Chris Parker stated that while Baldur's Gate 3's early access success is notable, it's not a model that will work for all story-based RPGs. He believes that for large, complex narrative games, the traditional development approach is more suitable, though he acknowledges exceptions exist and that early access can be beneficial for certain titles like the original Grounded.
PlayStation Store Update Worldwide June 23, 2026
Sony's PlayStation Store has received its weekly update, adding new content for PlayStation 4, PlayStation 5, and PlayStation VR owners. This week's PlayStation Plus Essential lineup includes Grounded, Nickelodeon All-Star Brawl 2, and Warhammer 40,000: Darktide.
I slept on Grounded for years, and now I’m having spider nightmares
The author expresses a newfound fear of spiders after playing the game Grounded for an extended period. This personal reflection highlights the game's ability to evoke strong emotional responses, even after initial apprehension.
Obsidian Entertainment is Facing a Class Action Lawsuit for Wage Theft, Breaking Labor Laws
Obsidian Entertainment is facing a class action lawsuit alleging systematic wage and hour violations, including unpaid overtime, denied breaks, and failure to reimburse business expenses. The lawsuit, filed in California, claims the studio engaged in wage theft, impacting non-exempt employees. Obsidian denies the allegations and is seeking dismissal or forced arbitration.
Nintendo Switch eShop charts – June 20, 2026 – top 10 is looking very familiar
The Nintendo Switch eShop charts for the week of June 20, 2026, show a remarkably consistent top ten, with Tomodachi Life: Living the Dream retaining the number one spot. All positions within the top ten remained unchanged from the previous week, indicating strong sustained popularity for established titles.
PlayStation CEO responds to reports Sony is abandoning PC, seemingly confirms big single-player games will be PS5…
PlayStation CEO Hideaki Nishino has indicated that Sony will prioritize PlayStation 5 exclusivity for its in-house developed single-player games, while live-service titles will continue to be released on both PS5 and PC. This strategy shift suggests a move away from the multiplatform releases previously seen with titles like Horizon and The Last of Us, aligning with reports that PlayStation is re-evaluating its PC release strategy for major first-party games.
PlayStation Store Update Worldwide June 16, 2026
Sony has released its weekly PlayStation Store update for June 16, 2026, detailing new content for PlayStation 4, PlayStation 5, and PlayStation VR owners. The update includes the June PlayStation Plus Essential lineup featuring Grounded, Nickelodeon All-Star Brawl 2, and Warhammer 40,000: Darktide.
Halo tops PS5 pre-order charts despite Xbox exclusivity pivot
Despite Microsoft's pivot back to Xbox console exclusives, the upcoming Halo remake, Halo: Campaign Evolved, is topping pre-order charts on the PlayStation Store across Europe. This success on a competitor's platform could influence future exclusivity decisions for Xbox.
Nintendo Switch eShop charts – June 13, 2026 – Tomodachi Life continues dominant run
The Nintendo Switch eShop charts for the week of June 13, 2026, show Tomodachi Life: Living the Dream maintaining its top position. Super Smash Bros. Ultimate and Minecraft follow in second and third place, respectively, with the rest of the top ten featuring a mix of popular Nintendo titles and other notable games.
