Inven Global

Bethesda has told staff that Obsidian will keep its creative identity after moving under Bethesda, according to an internal memo obtained by IGN. The memo, written by Bethesda's Jill Braff, explained what the change means for the XBOX-owned developer. It also confirmed that early work on a new Fallout project with Bethesda Game Studios is already underway.

Braff's note followed a wider announcement from XBOX executive Matt Booty. In that memo, XBOX confirmed it had cut 268 roles and reorganised its first-party studios. Bethesda, which now sits alongside Activision and King as one of XBOX's main business units, took on Obsidian as part of the shake-up.

Braff described the move as "primarily a change in reporting structure." She said the qualities that make Obsidian distinct would stay at the core of the studio's work. Feargus Urquhart, who leads Obsidian, will stay in charge of the studio alongside its current leadership team. Obsidian will now report directly to Braff.

"I've had the opportunity to get to know Feargus Urquhart and his team over the past six years, and I have great respect for what they've built," Braff wrote. "Obsidian has extraordinary creative talent, deep expertise, and a long history of creating memorable games and experiences."

Bethesda Game Studios keeps the lead on Fallout

According to the memo, Bethesda Game Studios will continue to lead the Fallout franchise. The two teams will build on their existing relationship and on "the early work already underway on a new Fallout project, with more to share in the months ahead."

Braff said the new setup supports the "franchise-led model" Bethesda has been building, while keeping accountability clear for both the studio and the franchise. No other details about the Fallout project were included. The memo did not give a title, platforms or a release window. Booty's earlier memo stated that Obsidian is continuing work on its current projects, including Grounded.

Braff says Bethesda is not resetting its roadmap

Braff acknowledged that staff across the company would likely have questions about what the change means for their current priorities and responsibilities.

"To be clear, we're not resetting our roadmap or asking teams to change what they're focused on," she wrote. She added that Bethesda would take time to work out where closer collaboration between teams could benefit players, and promised further updates as that process continues.

The Obsidian move is one part of what Booty called the "XBOX reset." Under the same reorganisation, Activision will develop the next Halo game through a new team built for the project. Playground and Turn 10 will also merge into a single studio focused on Forza and Fable.

The restructure has also hit studios outside Bethesda. XBOX will begin consulting employees on a proposed closure of Ninja Theory after two separate deals for the studio fell through. Consultation with Arkane is expected to run until the end of the year.

XBOX will hold an all-staff town hall on October 6th.

Full Memo

The full memo can be read below: