adminObsidian Entertainment will remain a distinct studio under Bethesda, according to a staff memo from Bethesda boss Jill Braff. The change moves the developer into a new reporting structure, while its existing leadership and creative identity are set to remain in place.
Image credit: Obsidian Entertainment/Bethesda Softworks
What the Bethesda reporting change means for Obsidian Entertainment
Microsoft announced a broad reorganisation of its internal studios on September 22. As part of the changes, Obsidian was moved under Bethesda. The announcement also included the transfer of UK studio Rare and ownership of the Halo franchise to Activision, a proposed closure of Ninja Theory, and a further 268 job cuts.
In her message to staff, Braff described Obsidian’s move as mainly a change to its reporting line. She said the studio’s creative identity and strengths would continue to shape its work. Feargus Urquhart and Obsidian’s leadership team will keep leading the studio, which will report to Braff.
For players following Obsidian’s games, the practical point is that the memo does not announce a reset of the studio’s plans. Braff said teams were not being asked to change their current priorities or roadmaps. She added that the organisations would consider where closer cooperation could support players and fans, and promised further communication as that work progresses.
Obsidian, Bethesda and the Fallout franchise
Bethesda Game Studios will continue to lead the Fallout franchise. Braff said the teams would build on their longstanding relationship and on early work already underway on a new Fallout project. No further details about that project were included in the memo, which said more information would be shared in the months ahead.
The franchise arrangement separates two responsibilities: Obsidian remains led by Urquhart and its own leadership team, while Bethesda Game Studios continues to lead Fallout. The stated purpose of the structure is to keep accountability for both the studio and the franchise clear.
Obsidian’s history with Microsoft
Microsoft acquired Obsidian in 2018. Braff said she had spent the preceding six years getting to know Urquhart and his team, and praised the studio’s creative talent, expertise, and record of making memorable games and experiences. Her memo welcomed the team and expressed interest in working more closely with it.
For now, the announcement confirms an organisational change rather than a newly announced shift in Obsidian’s development priorities. Obsidian Entertainment is expected to retain its distinct identity and leadership, while reporting to Bethesda and continuing its work under the current roadmap.
