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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.