Obsidian Game Director Addresses Studio's Evolution and Recent Layoffs
Games

Obsidian Game Director Addresses Studio's Evolution and Recent Layoffs

authorBy Jane McGonigal
DateJul 12, 2026
Read Time2 min

In the wake of substantial organizational shifts within Xbox, which saw numerous layoffs and the closure of several gaming studios, Obsidian Entertainment's game director, Brandon Adler, has challenged prevalent narratives about his studio's current state. He firmly states that despite external perceptions of a diminished or altered creative team, the fundamental identity and experienced leadership that shaped beloved Obsidian titles persist. Adler’s remarks underscore the internal resilience and continuity of talent within the company, even as it navigates a challenging industry landscape marked by recent workforce reductions.

The recent upheaval in the gaming industry, labeled by Microsoft as a "significant restructure," resulted in thousands of job losses and the dissolution of four development studios. While initial reports suggested Obsidian had largely escaped the immediate impact, it was later confirmed that they too experienced layoffs, affecting long-serving artists and newer engineers alike. Amidst these changes, rumors emerged that Obsidian might be developing a new installment in the Fallout series, with Josh Sawyer, director of the highly acclaimed Fallout: New Vegas, reportedly at the helm. This news offered a glimmer of hope for fans, but was met with skepticism from some corners of the online community, who suggested that the studio had lost its original creative spirit and key personnel.

Responding to these criticisms, Brandon Adler took to LinkedIn to address what he termed "misinformation" regarding the studio’s talent pool. He expressed frustration with observers who, without intimate knowledge of the development teams, claimed that Obsidian had lost the core individuals responsible for its earlier successes. Adler emphasized that many leaders within Obsidian today are the very same individuals who contributed to projects like Knights of the Old Republic 2, Fallout: New Vegas, Neverwinter Nights 2, and South Park: The Stick of Truth. He affirmed that the studio's creative "DNA"—its foundational approach to game design and storytelling—remains intact and continues to guide its current endeavors.

Adler also acknowledged the personal toll of the recent restructuring, describing it as an "extremely difficult week." He conveyed his profound sadness at saying goodbye to talented colleagues and close friends, highlighting the human impact behind corporate decisions. He reiterated that any former Obsidian developers seeking new opportunities are highly skilled professionals, both in their craft and as individuals, making them valuable assets to any potential employer. This sentiment not only showcased solidarity with his former colleagues but also served as a testament to the caliber of talent that has historically defined Obsidian Entertainment and continues to do so.

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