Obsidian Entertainment Slams Speculation, Affirms Identity Amid Layoffs and Project Shifts

Obsidian Entertainment, the renowned developer behind Avowed, Grounded 2 (Early Access), and The Outer Worlds 2, has navigated a tumultuous week following Microsoft's announcement of 1,600 mass layoffs across its gaming division, with an additional 1,600 layoffs imminent. The studio itself suffered the loss of 50 staff members, prompting a reevaluation of its project pipeline, notably halting development on the Avowed sequel in favor of a new Fallout game. This shift, coupled with online speculation about the studio's future under Xbox, has led to a strong response from Obsidian's leadership.

Game Director of The Outer Worlds 2, Adler, shared his reflections on the challenging week, highlighting both the personal and professional impacts of the layoffs. "This has been an extremely difficult week at Obsidian," Adler wrote, expressing his heartfelt sentiments towards the departed colleagues, many of whom are not just skilled developers but also close friends. He encouraged potential employers to recognize the talent and personal qualities of these former Obsidian devs, emphasizing, "you are hiring some of the best people around—both professionally and personally."

Obsidian Strikes Back at Cold Take Critics

Adler also addressed the surge in speculation and what he termed "cold take artists" disseminating misinformation about Obsidian's identity and future. He critiqued the lack of understanding among these commentators regarding the studio's historical contributions and the continuity of its leadership.

Another difficult aspect is having to see a bunch of cold take artists coming out of the woodwork to talk about what Obsidian is or what it isn’t. The number of times I’ve seen people, with no understanding of who has worked on our previous games or what they contributed, talk about how Obsidian isn’t who they used to be… is staggering. Most of the time they are not just wrong, but spreading an enormous amount of misinformation. In most circumstances, the people in lead or director roles are the same people that worked on games like The Outer Worlds , Pillars of Eternity , and New Vegas . Like, literally the same people. The through line from KotOR2 to our current games is pretty clear.

Adler, Game Director

Adler emphasized that key figures in lead roles are often the same individuals who worked on iconic titles like The Outer Worlds, Pillars of Eternity, and New Vegas, highlighting a clear through-line from KotOR2 to current projects.

Adler pushed back against narratives suggesting a fundamental change in Obsidian's "DNA," stating, "the DNA at Obsidian is the same as it always was. The same DNA that created KotOR, New Vegas, NWN2, and Stick of Truth." He urged caution against uninformed opinions:

Just remember, when you are seeing people spouting off about Obsidian, running their mouths about who we are now vs. what we were then, you are listening to someone crow about something with zero insight into how a game is made and who contributed to our previous games.

Adler, Game Director

Obsidian's Unspoken Gamble After Axon Layoffs

Bloomberg reports that Obsidian was deeply invested in an Avowed sequel before the layoffs, with plans now pivoted towards a new Fallout project under the leadership of Josh Sawyer, who was previously heading a game with similarities to a Fallout-style RPG. Despite the shift, work on Avowed is reportedly continuing in the meantime. This move aligns with Xbox's strategy to prioritize its flagship franchises, with CEO Asha Sharma aiming for faster releases of upcoming Halo and Fallout titles, albeit with years likely remaining in their development pipelines.

Obsidian's multi-game approach also includes The Outer Worlds 2, often compared to Fallout for its sci-fi, RPG elements, showcasing the studio's capability to balance franchise work with original IP development. The decision to halt the Avowed sequel, at least for now, reflects the broader industry trend of consolidating resources around proven franchises during uncertain times.

Ironically, Layoffs Boosted Dev Trust

The online community's speculation and conjecture about Obsidian's future underscore the challenges studios face in managing external perceptions during restructuring. Adler's statements serve as a reminder of the importance of informed discourse, especially when discussing the intricate, often unseen dynamics of game development. For fans of Obsidian's titles, from Pillars of Eternity to The Outer Worlds, the assurance of the studio's unchanged "DNA" offers a sense of continuity amidst change.

Xbox's shift from the Game Pass-era strategy of diverse, subscriber-attracting projects to a focus on core franchises may have broader industry implications, potentially influencing how acquired studios allocate resources and prioritize titles. Observers will watch closely to see how this impacts the diversity of upcoming Xbox releases.

Obsidian’s Identity Under Fire

As the gaming community awaits more concrete details on Obsidian's new Fallout project and the eventual release of The Outer Worlds 2, the studio's affirmation of its core identity provides a beacon of stability. The challenge ahead lies in balancing the expectations of fans, the demands of Xbox's franchise-focused strategy, and the inherent risks of developing high-profile titles under increased scrutiny.

Obsidian's history, marked by successes across various IPs, positions it well to deal with these challenges. The immediate future will see the studio focusing on its new Fallout endeavor while presumably keeping the ember of Avowed alive for potential future development, a sign of the studio's adaptability and dedication to its craft.