Microsoft's latest Xbox restructuring has removed roughly a quarter of Obsidian Entertainment's staff, with reports indicating 60 to 70 roles eliminated across departments including producers, artists, designers, programmers, QA testers, and writers.

Brandon Adler, director of The Outer Worlds 2 and a studio veteran since 2006, addressed the cuts and subsequent online commentary in a LinkedIn post, expressing regret over losing colleagues and friends while pushing back against claims that Obsidian has fundamentally changed. He noted that many lead and director roles remain filled by individuals who contributed to prior titles like The Outer Worlds, Pillars of Eternity, and New Vegas, maintaining that the studio's core DNA traces back to projects such as KotOR 2 and New Vegas despite inevitable evolution over two decades.

Separate coverage from Kotaku and Game File details the scale through sources and California WARN notices confirming at least 52 affected employees, with remaining staff reportedly left without clear guidance on how a substantial project backlog will proceed amid the reduced headcount. Discussions on X have highlighted concerns about project continuity and speculation regarding studio pivots toward established franchises.

The development reflects broader patterns of corporate realignment in the sector, where metrics and portfolio priorities drive personnel decisions with minimal elaboration on downstream effects.