# Xbox places Obsidian under Bethesda in studio restructuring move

- URL: https://talkfuse.com/story/bethesda-say-new-underlings-obsidian-will-retain-their-distinct-creative-identity-despite-no-longer-being-as-free-to-work-on-their-own-creatively-distinct-series/
- Published: 2026-09-24T14:49:47+00:00
- Updated: 2026-09-24T21:16:12+00:00
- Original publisher: Rock Paper Shotgun
- Original article: https://www.rockpapershotgun.com/bethesda-say-new-underlings-obsidian-will-retain-their-distinct-creative-identity-despite-no-longer-being-as-free-to-work-on-their-own-creatively-distinct-series
- Topics: Entertainment, Gaming, TV

## Key points

- Obsidian placed under Bethesda; leadership asserts creative identity will persist despite reduced independence
- Studio now focused on new Fallout project; its own franchises deprioritised
- Critics question whether studio can retain distinctiveness without operational autonomy

## Summary

Obsidian Entertainment is being placed under Bethesda's management following Xbox's latest studio restructuring. Bethesda president Jill Braff has characterised the move as primarily a change in reporting structure, asserting that Obsidian will retain its distinct creative identity and strengths. However, industry observers question whether Obsidian's distinctiveness can survive the loss of operational independence, particularly given Xbox's strategic pivot towards concentrating resources on established franchises.

Obsidian's CEO Feargus Urquhart and his leadership team will remain in place, with the studio now reporting to Braff, whilst Bethesda Game Studios continues to oversee the Fallout franchise. Both studios are collaborating on a new Fallout project directed by Josh Sawyer, and some Obsidian developers have already begun work on this initiative. In practice, Obsidian's own franchises—The Outer Worlds and Avowed—along with smaller original projects such as Pentiment, have been deprioritised as the studio shifts focus to supporting Bethesda's established series.

## Coverage

- [Rock Paper Shotgun: Xbox places Obsidian under Bethesda in studio restructuring move](https://www.rockpapershotgun.com/bethesda-say-new-underlings-obsidian-will-retain-their-distinct-creative-identity-despite-no-longer-being-as-free-to-work-on-their-own-creatively-distinct-series)
- [Push Square: Obsidian Remains 'Distinct' and Keeps Leadership Team After Being Absorbed by Bethesda](https://www.pushsquare.com/news/2026/09/obsidian-remains-distinct-and-keeps-leadership-team-after-being-absorbed-by-bethesda)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.