Obsidian Entertainment
CompanyUnited States
Documents about Obsidian Entertainment
Report: Bethesda President Tells Obsidian Staff It Won't Lose 'Creative Identity' After Merge
Obsidian Entertainment is undergoing a significant organizational transition following its integration into the Bethesda corporate structure.
- Obsidian Entertainment is being merged into Bethesda as part of a broader restructuring by parent company Xbox.
- Bethesda president Jill Braff stated in an internal email that the merger is primarily a change in reporting structure and will not alter Obsidian's core creative identity.
- The merger follows a period of significant workforce reduction at Obsidian, which included the layoff of at least 52 employees in July 2026.
The Story Behind the Story of an Xbox Studio Scoop
The primary purpose of this account is to provide a behind-the-scenes look at the investigative process used to uncover the departure of the head of ZeniMax Online Studios during a wave of layoffs at Microsoft’s Xbox division in July 2026.
- The head of ZeniMax Online Studios, developer of The Elder Scrolls Online, departed the company as part of Microsoft's broader layoffs within its gaming division.
- Microsoft's recent workforce reductions across its gaming division have impacted approximately 1,600 employees.
- State-level WARN notifications revealed 379 ZeniMax employee layoffs in Maryland and 158 ZeniMax worker layoffs in Texas, with a significant portion of the Texas cuts occurring at id Software.
Xbox Layoffs Impact ZeniMax and Obsidian Personnel
Microsoft’s gaming division is undergoing a significant workforce reduction, with recent state-level WARN notices detailing the impact on ZeniMax and Obsidian Entertainment personnel.
- Microsoft is executing a long-term strategy to eliminate 3,200 positions from its gaming division by June 2027 to address financial instability.
- ZeniMax and its affiliated studios, including id Software and ZeniMax Online Studios, are facing significant cuts, with 379 roles eliminated in Maryland and 158 in Texas.
- The layoffs impact a broad spectrum of core development functions, including gameplay design, engine programming, quality assurance, art direction, and production.
Of Course, Working at Obsidian Is Like a Real-World RPG
Obsidian Entertainment’s operational philosophy centers on long-term stability and iterative development, aiming to sustain the studio for a century.
- Obsidian Entertainment has released six games since its 2018 acquisition by Microsoft, including three titles in 2025 alone: Avowed, Grounded 2 (Early Access), and The Outer Worlds 2.
- The studio prioritizes long-term staff retention by encouraging employees to 'multi-class' across different roles and projects, aiming to build a deep institutional knowledge of the studio's development ethos.
- Obsidian maintains a conservative, iterative development strategy that focuses on refining existing tech stacks rather than chasing industry-wide AAA trends or massive scale.
About Grounded 2 and All the People Helping to Make It
Obsidian Entertainment is currently developing Grounded 2, a sequel to its survival-crafting title, which features a map triple the size of the original and introduces rideable insects known as buggies.
- Obsidian Entertainment is developing Grounded 2, a survival-crafting sequel featuring a map three times the size of the original and new mechanics such as rideable insects.
- Grounded 2 will launch in early access on Xbox Series and PC, with Obsidian utilizing the program to gather community feedback for refining core features like rideable buggies.
- Eidos Montreal is co-developing Grounded 2, marking a collaborative effort between the two studios to build upon the community-driven model established by the first game.
Bungie, Obsidian, Riot, and Xbox Devs Reveal Their Annual Pay
The gaming industry has seen a surge in pay transparency initiatives, driven primarily by developers in the United States and Canada utilizing the social media hashtag #GameDevPaidMe.
- The #GameDevPaidMe social media movement has gained traction as a tool for industry pay transparency, with developers across North America publicly disclosing their compensation packages.
- Senior-level roles in software engineering and design command high salaries, such as a $213k annual salary for an Obsidian design director and $155k plus a 15% bonus for a senior software engineer at Demonware.
- Compensation for quality assurance (QA) roles varies significantly, ranging from $20k for a tester at Playground to $105k for a quality engineer at Xbox as of 2021.
