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Story summary
- Microsoft reorganized Xbox studios, placing Obsidian Entertainment under Bethesda Game Studios.
- The restructuring included layoffs of 268 Xbox studio employees.
- Bethesda president Jill Braff said Obsidian will retain its creative identity.
- Obsidian cancelled several projects, including an Avowed sequel, to develop a new Fallout game.
- Bethesda will lead Fallout and collaborate with Obsidian on Fallout 5 pre-production and remasters.