Obsidian Entertainment, fresh from releasing Avowed, Grounded 2 (Early Access), and The Outer Worlds 2, addresses the aftermath of Microsoft's 1,600-strong gaming division layoffs, which saw 50 staff cut from the studio. Despite halted Avowed sequel plans in favor of a new Fallout game under Josh Sawyer's leadership, the studio pushes back against claims of a changed identity. Game Director Adler defends Obsidian's "DNA," emphasizing continuity despite external speculation.
Microsoft's "reset" memo has cast a shadow over several Xbox studios and games. Notably, the Forza Motorsport franchise has been cancelled, and The Outer Worlds series has been discontinued due to poor sales of The Outer Worlds 2. Studios like Compulsion, Ninja Theory, and Double Fine are in negotiations, putting titles like Psychonauts, Senua (Hellblade series continuation), and South of Midnight at risk.
