Bethesda Tells Obsidian Staff Reporting Change Only After Xbox Restructure
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.