Full Breakdown
Obsidian Entertainment Director Defends Studio Legacy Amid Xbox Layoffs
7/15/2026, 12:06:07 AM
Layoffs and Adler’s Public Response
Microsoft’s restructuring of its first-party studios led to a California WARN notice indicating that Obsidian Entertainment is cutting 52 positions—43 at its California office and nine remote workers in the state. In a LinkedIn post, studio director Brandon Adler described the week as “extremely difficult,” noting he had to say goodbye to “some amazing game developers” and “some of my best friends.” He used the moment to push back against online commentary questioning whether the studio remains the same.
Studio History and Recent Project Landscape
Founded in 2000, Obsidian created acclaimed titles such as *Star Wars: Knights of the Old Republic II*, *Fallout: New Vegas*, *Pillars of Eternity* and *The Outer Worlds*. Acquired by Xbox in 2018, the studio released six games in eight years. Bloomberg reported that 2023’s *Grounded 2* performed strongly, while internal sales expectations for *The Outer Worlds 2* and *Avowed* fell short. The same outlet later noted a cancelled *Avowed* sequel and a shift of resources toward a new, unconfirmed Fallout project.
Official Statements from Brandon Adler
Adler emphasized continuity in leadership, stating that “the people in lead or director roles are the same people that worked on games like *The Outer Worlds*, *Pillars of Eternity*, and *New Vegas*. Like, literally the same people.” He added, “Is Obsidian the same as it was 20 years ago? No, of course not. Nothing stays the same. But the DNA at Obsidian is the same as it always was.” Adler also urged other studios to consider hiring displaced staff, calling them “some of the best people around – both professionally and personally.”
Online Criticism and Counterpoints
Adler labeled detractors “cold take artists,” accusing them of “spreading an enormous amount of misinformation” about the studio’s legacy. He highlighted the frequency of uninformed commentary: “The number of times I’ve seen people… talk about how Obsidian isn’t who they used to be, is staggering.” Critics argue that the layoffs and project cancellations signal a shift in the studio’s direction, a point Adler rejects as lacking insight into game development.
Verbatim Quotes
- “Another difficult aspect is having to see a bunch of cold take artists coming out of the woodwork to talk about what Obsidian is or what it isn't,” — Brandon Adler, LinkedIn post
- “The number of times I've seen people, with no understanding of who has worked on our previous games or what they contributed, talk about how Obsidian just isn't who they used to be... is staggering. Most of the time they are not just wrong, but spreading an enormous amount of misinformation.” — Brandon Adler, LinkedIn post
- “This has been an extremely difficult week at Obsidian. Not only have I had to say goodbye to some amazing game developers, but I’ve had to say goodbye to some of my best friends.” — Brandon Adler, LinkedIn post
- “Is Obsidian the same as it was 20 years ago? No, of course not. Nothing stays the same. But the DNA at Obsidian is the same as it always was.” — Brandon Adler, LinkedIn post
