Bethesda Tells Obsidian Staff Reporting Change Only After Xbox Restructure
The memo separates a reporting-line change from development control: Fallout stays with Bethesda Game Studios while Obsidian keeps its management, which is the distinction that decides how much the restructuring touches the new Fallout project.
Key Facts
- Microsoft announced an Xbox division reorganization on September 22, 2026 that places Obsidian Entertainment under Bethesda Softworks.
- Bethesda president Jill Braff told employees in an email that the move is mainly a change in reporting structure.
- Obsidian Entertainment continues to be led by its current management, including CEO Feargus Urquhart, and the Fallout series continues to be led by Bethesda Game Studios.
- Obsidian Entertainment is working on a new Fallout project with Bethesda Game Studios, and Braff said more will be shared in the coming months.
- Bloomberg reporter Jason Schreier reported in July 2026 that Josh Sawyer, a director on Fallout: New Vegas, is expected to lead the new Fallout project.
Reporting from 2 sources: GameBusiness.jp, Game Spark.
Bethesda president Jill Braff told Obsidian Entertainment employees that the studio's move under Bethesda Softworks is mainly a change in reporting structure. The Xbox division reorganization Microsoft announced on September 22, 2026 places Obsidian under Bethesda's purview. Braff said in the email that Obsidian's creativity and strengths remain at the core of the studio and its works, that current management including CEO Feargus Urquhart continues to lead the studio, and that the Fallout series stays with Bethesda Game Studios. According to the email text published by IGN, Braff also said there are no plans to rework current development plans or ask teams to change the work they are doing. Obsidian is working on a new Fallout project with Bethesda Game Studios, and Braff said more details will be shared in the coming months. Bloomberg reporter Jason Schreier reported in July that Josh Sawyer, a director on Fallout: New Vegas, is expected to lead the project.
Obsidian Entertainment's move under Bethesda Softworks was first revealed in the Xbox reorganization Microsoft announced on September 22, 2026. The studio is known for Avowed and The Outer Worlds, and it developed Fallout: New Vegas, a spin-off in the Fallout series that Bethesda handles.
Braff's email was reported by Aftermath and IGN, and IGN published its full text. The message frames the transition as a reporting change rather than a rebuild of what teams are making. Obsidian stays under its current management, including CEO Feargus Urquhart. The Fallout series continues under Bethesda Game Studios.
The new Fallout project, which Obsidian is working on with Bethesda Game Studios, has no announced details. Braff said there will be more to share in the coming months. In July, Bloomberg reporter Jason Schreier reported that Josh Sawyer, who served as a director on Fallout: New Vegas, is expected to lead development. The September 22 reorganization also moved other Xbox studios and included 268 layoffs.
Synthesized by Yomimono from the 2 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.