Obsidian Entertainment employees are reportedly unhappy about the studio being placed under Bethesda as part of Microsoft’s wider Xbox restructuring, with some staff concerned that the change could reduce the creative independence they previously enjoyed.
The report claims employees at Obsidian had become accustomed to considerable freedom in choosing and developing projects. That has created anxiety about what the new organizational structure could mean for future games.
Bethesda has publicly indicated that it does not intend to interfere with Obsidian’s creative independence, but the long term effect of the restructuring remains unclear.
| Studio | Reported change | Current concern or status |
|---|---|---|
| Obsidian Entertainment | Moved under Bethesda | Staff reportedly fear reduced autonomy |
| Undead Labs | Became independent | Previous acquisition talks reportedly collapsed |
| Ninja Theory | Sale efforts reportedly failed | Microsoft is said to be considering closure |
| Rare | Moved under Activision | Development team largely unaffected by latest cuts |
| Halo operations | Shifted toward Activision | Part of broader Xbox restructuring |
Obsidian employees reportedly fear less creative freedom
The report says some people inside Obsidian are unhappy with the studio’s new position under Bethesda.
According to the account, employees believed they previously had substantial autonomy and were able to make the games they wanted with relatively little interference.
The concern is that becoming part of a different organization could change that relationship.
One account attributed to sources inside the studio says the new arrangement was not what employees originally expected when Obsidian became part of Microsoft.
That remains a reported internal sentiment rather than an official statement from Obsidian.
Bethesda says it does not want to interfere
The concerns sit alongside public assurances from Bethesda that Obsidian’s creative independence will remain intact.
The supplied material does not provide detailed information on how responsibilities will be divided between the two studios or which decisions Bethesda will control.
That means it is too early to determine whether the move will materially change how Obsidian develops games.
The report presents employee concern as genuine, while also noting that Bethesda has said it does not intend to disrupt the studio’s existing culture.
The Outer Worlds 2 DLC is still planned
Despite the restructuring, Obsidian has confirmed that previously promised downloadable content for The Outer Worlds 2 is still moving forward.
The wider franchise is described as being effectively paused for the foreseeable future, but the announced DLC plans have not been canceled.
This suggests that at least some existing commitments will continue despite the organizational changes.
The supplied material does not provide release dates or further details about the DLC.
Undead Labs reportedly had another buyer lined up
The restructuring report also provides more information about Undead Labs.
Microsoft had previously indicated that the studio would be acquired by a third party, but it eventually became independent instead.
According to the report, Splash Damage had at one point been lined up to acquire Undead Labs.
That deal reportedly collapsed for reasons that remain unknown.
Other potential discussions are also said to have taken place, with Krafton mentioned as one possible name, although the report does not establish that a formal agreement existed.
Undead Labs ultimately bought itself out, gaining independence while also going through layoffs.
Ninja Theory faces a more uncertain future
Ninja Theory is described as being in a more difficult position.
The studio had also been expected to leave Microsoft through a sale, but two reported deals failed.
According to the report, at least two potential investors examined the business and were discouraged by the studio’s operating costs.
Microsoft is now reportedly considering closing Ninja Theory if another buyer cannot be found.
The studio’s next project, Senua, is said to be progressing well internally and is described as a significant improvement over Hellblade 2.
However, the supplied material makes clear that the project’s future is uncertain if the studio cannot secure a new owner.
Rare moves under Activision
Rare has also been affected by the Xbox restructuring, although the latest changes reportedly did not significantly reduce its development team.
Operational roles, including some HR positions, were cut.
The studio had already experienced redundancies following the cancellation of Everwild, but some of that impact was reportedly reduced by moving employees to Sea of Thieves and reducing outsourced development.
Rare is said to have additional projects in development.
Their future will now depend on decisions made under Activision, which has taken responsibility for the studio as part of the wider reorganization.
Xbox is reorganizing studios around larger publishing groups
Taken together, the reported changes show Microsoft consolidating more of its internal gaming operations under Activision and Bethesda parent ZeniMax.
Obsidian’s move under Bethesda is one of the most closely watched parts of that process because of the studio’s reputation for distinctive role playing games and its history of operating with considerable creative freedom.
For now, the most important point is that employee concern has been reported, while Bethesda has publicly said it does not want to interfere with Obsidian’s independence.
Whether those assurances hold over future projects will depend on how the new structure works in practice.
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