The recent wave of layoffs at Xbox has sent shockwaves through the gaming industry, but for the developers at Obsidian Entertainment, the impact goes far beyond corporate statistics. Following Microsoft’s decision to cut 3,200 jobs across its gaming division, Obsidian—a studio beloved for its rich history of role-playing games—was hit particularly hard, reportedly losing a quarter of its workforce. Beyond the heartbreak of losing talented colleagues and dear friends, the studio is facing a significant pivot in its identity. Management has decided to refocus the company’s efforts toward the blockbuster Fallout franchise, a move that has necessitated the cancellation of several other projects, most notably the planned sequel to the upcoming Avowed.
Amidst this heavy atmosphere of uncertainty and grief, Brandon Adler, a longtime director at Obsidian, took to LinkedIn to defend the soul of his studio. Adler, who has spent over a decade helping shape the company’s vision, expressed deep frustration with the “cold take artists” currently flooding the internet with uninformed speculation. These critics, often lacking any real understanding of how a studio functions, have been aggressively debating whether Obsidian is still the company it used to be. For those on the inside, having to witness these baseless, often malicious narratives while mourning the loss of coworkers has made an already “extremely difficult week” feel even more insurmountable.
Adler’s defense of the studio is rooted in the reality of his team’s consistency. He points out that the leadership and key roles at Obsidian today are held by the very same people who crafted legendary titles like Fallout: New Vegas, Pillars of Eternity, and The Outer Worlds. He rejects the notion that the studio has lost its essence simply because it has evolved over two decades. To Adler, the “DNA” of the studio remains identical to the group that produced classics like Star Wars: Knights of the Old Republic II. He emphasizes that while change is inevitable in any creative pursuit, the core group of developers—the heart of the studio—has remained remarkably stable throughout the years.
There is a palpable sense of protective anger in Adler’s message, as he highlights the disconnect between the expertise of his colleagues and the ignorance of those shouting about the studio’s decline. He notes that when outsiders disparage the quality or spirit of Obsidian’s current output, they are projecting opinions without ever having stepped foot inside the development process or knowing who actually contributed to their favorite games. This external noise, he argues, is a disservice to the incredibly gifted developers who have just been laid off—people he insists are among the best in the industry, both for their professional skills and their character.
The shift toward the Fallout franchise, while a strategic move to align with Microsoft’s focus on its largest intellectual properties, symbolizes a broader paradigm shift in the industry: the forced prioritization of prestige brands over original creative exploration. The fact that this new project is a fully-fledged Fallout title rather than a remaster signals that Obsidian is being leaned on to carry a massive weight within the Xbox ecosystem. Yet, the cost of this shift is the silence of projects that were still in their infancy, including the Avowed follow-up, which serves as a stark reminder of the sacrifices often demanded by corporate restructuring.
Ultimately, we are seeing the clash between the cold, calculated efficiency of global tech conglomerates and the fragile, human-centric nature of game development studios. Obsidian remains a place that many in the industry regard as “truly special,” a sentiment echoed by peers who have collaborated with the team over the years. As the dust settles from these layoffs, the people remaining at the studio are left to shoulder the burden of a new corporate mandate while navigating the loss of those who built their legacy. For those watching from the outside, perhaps the best takeaway is to offer a little grace: these are not just lines on a balance sheet; they are passionate craftsmen and women working through one of the most painful transitions in their studio’s storied life.