Microsoft has undergone another large-scale reshuffle, merging studios and laying off employees. Obsidian Entertainment, the company behind Avowed, Grounded and The Outer Worlds, has restructured.
The developers will now report to publisher Bethesda. Bethesda president Gil Braff sent a letter to employees assuring them that the team’s unique creative identity will be maintained. Chief Executive Officer Fergus Urquhart and the previous management team will remain in place.
The publisher will continue to oversee the development of the Fallout series. The two teams will join forces to create a new game in the Fallout universe, and the early stages of the game have already begun. Previously, the Xbox summer reboot resulted in multiple Obsidian projects being frozen, including the sequel Avowed. Braff praised the California studio’s experience and promised to reveal more details in the coming months.