Bethesda Officially Responds To Obsidian Entertainment Move

Obsidian Will Retain "Creative Identity", Despite Being Pushed To Make Fallout Published Sep 24, 2026, 8:01 AM EDT James Lucas is an Executive Editor at TheGamer who has worked in professional journalism since 2018. A Newcastle University graduate with a degree in Journalism, Media, and Culture, they have written hundreds of guides, news stories, and original reports, with bylines in IGN, NME, GaymingMag, and VG247, sourcing interviews with studio heads, legendary industry figures, prominent actors, and more. An expert on FPS games, Soulslikes, RPGs, and survival horror, James has intimate knowledge of a wide variety of titles, providing in-depth coverage and exclusive profiles. Some of the games they have extensively covered include: Half-Life 3, Counter-Strike, Elden Ring, and Fallout. They pride themselves on their consistently thorough research, leveraging nearly a decade of industry experience. You can reach them at James.t@thegamer.com Sign in to your TheGamer account Earlier this week, Xbox announced as part of its "reset" that it would be placing Obsidian Entertainment under Bethesda. This understandably sparked concern that the studio would be reduced to nothing more than a Fallout support team, but Bethesda president Jill Braff assures that it will keep its "creative identity." "The creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work. [CEO] Feargus [Urquhart] and the Obsidian leadership team will continue to lead Obsidian, with the studio reporting to me," Braff said in an internal email shared by Aftermath. "Bethesda Game Studios will continue to lead the Fallout franchise. Together, the teams will build on their longstanding relationship and the early work already underway on a new Fallout project, with more to share in the months ahead. This structure supports the franchise-led model we've been strengthening while keeping accountability for both the studio and the franchise clear." But Will It Retain Its Creative Freedom? Obsidian Entertainment official Logo Banner From Facebook Page While it might sound like Obsidian is in good hands, or at least, better hands than Halo, it's worth considering that Xbox laid off a quarter of the studio in July, canceled Avowed 2, and pushed for a new Fallout game. The team may retain its "creative identity and strengths," but it's fair to question how much creative freedom remains. Especially considering that Xbox's statement made no mention of Obsidian's original IPs beyond Grounded. It's hard to imagine there being much wiggle room left for smaller award-winning projects like Pentiment under this franchise-first mentality, or for space to grow new IPs like Grounded. Nevertheless, Braff appears enthusiastic about working more closely with the team. "I've had the opportunity to get to know Feargus Urquhart and his team over the past six years, and I have great respect for what they've built,” she said. “Obsidian has extraordinary creative talent, deep expertise, and a long history of creating memorable games and experiences. I'm looking forward to working more closely with them." Released October 19, 2010 ESRB M for Mature: Blood and Gore, Intense Violence, Sexual Content, Strong Language, Use of Drugs Developer(s) Obsidian Entertainment Publisher(s) Bethesda Engine Gamebryo Franchise Fallout