Shockwaves Hit Obsidian Entertainment: Xbox Layoffs Impact Beloved RPG Studio

The gaming industry has been facing a challenging period lately, with news of job cuts becoming increasingly common. Unfortunately, it seems no studio, no matter how beloved, is immune to these shifts. The latest reports indicate that Obsidian Entertainment, the brilliant minds behind fan-favourite titles like Avowed, The Outer Worlds, Pentiment, and Grounded, has been hit by the recent wave of Xbox layoffs.

This news comes as part of a larger restructuring effort by Xbox, which has already seen a significant number of jobs cut across various departments. While the full scale of these cuts is still unfolding, the impact on individual studios and developers is deeply felt.

Several developers from Obsidian Entertainment themselves took to social media to share the unfortunate news. Among them was Jay Turner, a talented narrative designer with credits on the upcoming Avowed, as well as classics like Dragon Age: Origins and Mass Effect 2. Turner candidly described the situation, stating that he and many other skilled developers were let go as part of what he termed “the Microsoft sacrificial rituals.”

Kate Dollarhyde, a narrative lead who has contributed to titles such as Avowed, Pentiment, The Outer Worlds, and Pillars of Eternity, also confirmed online that a significant number of excellent developers at Obsidian had lost their positions. An animator from the studio echoed these sentiments, expressing gratitude for their time at Obsidian, which they called an “amazing place to work,” despite being among dozens affected.

While the exact number of individuals impacted at Obsidian isn’t officially confirmed by Microsoft, industry reports suggest that a substantial portion of the studio, possibly around 60 to 70 people—roughly 25% of their workforce—has been affected. This is a significant blow to a studio known for its rich storytelling and intricate RPG experiences.

For a while, Obsidian Entertainment was seen as one of the more stable studios under the Xbox Game Studios banner. However, with recent layoffs also hitting major developers like Bethesda and Zenimax Online, it’s becoming clear that the current climate leaves no one completely safe. The gaming community in Pakistan and worldwide is watching these developments with a mix of concern and hope for the affected individuals and the future of these studios.