Bethesda and Microsoft casual games president Gil Braff has denied rumors that Obsidian Entertainment was being demoted to a backers-only studio. Concerns in the gaming industry were sparked by a major internal shakeup at Xbox, in which the development studio known for Avowed and Fallout: New Vegas was placed directly under Bethesda. In an internal email to employees, Braff emphasized that Obsidian’s unique creative identity and strengths will continue to be core to the studio’s work. Responsibility for ongoing operations remains with the current management team around chief executive Feargus Urquhart.
The reorganization of Microsoft’s gaming division is realigning responsibilities and aligning capabilities more closely with established core brands. Under the leadership of Xbox CEO Asha Sharma, major brands such as “The Elder Scrolls” and “Fallout” are becoming the focus of long-term product strategies.
The fact that Obsidian Entertainment – formerly an independent pillar of Xbox Game Studios – will report to Bethesda going forward has raised concerns that the team may be used primarily as a collaborator on publications by Bethesda Game Studios.
Braff clarified that Bethesda Game Studios still has primary responsibility for the Fallout series, but that both studios are solidifying their long-term relationship. Against this backdrop, a new joint Fallout project is already in early development, with more details to be announced in the coming months. This mission has a special sense of history, as 2010’s Obsidian’s Fallout: New Vegas is still considered one of the strongest installments in the series by fans and critics alike.
Despite the new reporting structure under Bethesda’s leadership, Irvine developers are continuing to work on their own projects, such as support for Grounded and ongoing games. With such assurances, management is sending a signal that a centralized model at the brand level does not necessarily lead to flattening of individual studios. Still, there remains a degree of skepticism in the industry, as changes in corporate structures come with staff cuts and tighter budget controls.
In recent years, each manufacturer’s traditional development team has gradually consolidated into larger franchise teams. As such, Braff’s clarification reassures staff and fans for the time being, while the actual implementation of the collaboration for Fallout’s next chapter will be closely watched.
