Obsidian Game Director Responds to Critics Following Recent Layoffs

Obsidian Entertainment, fresh off the releases of Avowed, Grounded 2 (in Early Access), and The Outer Worlds 2 within the same year, faced significant challenges as part of a wave of 1,600 layoffs across Microsoft’s gaming division, with more cuts expected. Xbox trimmed 50 positions from the studio and shifted its focus from a sequel to Avowed to a new Fallout title. Brandon Adler, the game director for The Outer Worlds 2, expressed his feelings about the recent upheaval and the speculation surrounding Obsidian’s future under Xbox.

“This has been an incredibly tough week at Obsidian,” he shared on LinkedIn. “I’ve had to say goodbye to some fantastic game developers and close friends. I genuinely empathize with each of them. If you’re considering hiring any of these former Obsidian devs, know you’re bringing on some of the best talent out there—both in terms of skills and character.”

Adler also addressed the influx of uninformed commentary regarding Obsidian’s identity and direction. “It’s disheartening to see so many people, lacking knowledge of our team’s contributions to past games, claim that Obsidian isn’t what it used to be. Often, they’re not just mistaken but are spreading a lot of misinformation.”

He emphasized that many of the leaders and directors at Obsidian are the same individuals who worked on titles like The Outer Worlds, Pillars of Eternity, and New Vegas. The continuity from titles like KotOR2 to their current projects is evident.

Having joined Obsidian in 2006 as a tester for Neverwinter Nights 2, Adler has been part of the studio’s journey, which includes the release of Fallout: New Vegas in 2010. Since then, Obsidian has developed its own unique worlds, including the fantasy CRPG series Pillars of Eternity and the sci-fi shooter The Outer Worlds.

This week has seen a flurry of speculation about Obsidian’s project choices and potential shifts in studio culture. Adler countered claims that the studio’s core identity has changed. “Is Obsidian the same as it was 20 years ago? No, of course not. Nothing remains static. But the essence of Obsidian is unchanged—the same essence that brought us KotOR, New Vegas, NWN2, and Stick of Truth. I take great pride in our history and am excited about who we’ve become.”

He added, “When you hear people discussing Obsidian and comparing who we are now to who we were, remember that you’re often listening to someone without any real understanding of game development or the contributions to our past titles.”

Reports indicate that the studio was already deep into a sequel for Avowed when the layoffs occurred. The focus has now shifted to a new Fallout project, although work on the new Avowed is still ongoing. As a multi-project studio, Obsidian was also developing other titles, including one led by design director Josh Sawyer that resembled a Fallout-style RPG. He is now expected to lead the new Fallout game.

This shift comes as Xbox refocuses on its major franchises, moving away from a strategy that allowed acquired studios to explore diverse projects aimed at attracting new subscribers. Xbox CEO Asha Sharma is reportedly eager to expedite the development of the next Halo and Fallout games, though both are still likely years away, regardless of the resources allocated to their production.