Report: Bethesda president tells Obsidian staff it won't lose 'creative identity' after merge
Bethesda president Jill Braff is reportedly calling Obsidian becoming part of Bethesda 'primarily a change in reporting structure.'
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Bethesda president Jill Braff is reportedly calling Obsidian's merging with Bethesda 'primarily a change in reporting structure.'
September 23, 2026
The news comes via Aftermath, which reports having seen the quote on an email sent to employees. The reported email follows this week's announcement from parent company Xbox, saying the Fallout: New Vegas and Pentiment maker is being merged with Bethesda (alongside various divestment and another couple hundred of layoffs to boot).
For Braff, it seems the move isn't as big of a deal as people think, reportedly telling staff that "the creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work."
The email continues: "[CEO] Feargus [Urquhart] and the Obsidian leadership team will continue to lead Obsidian, with the studio reporting to me. Bethesda Game Studios will continue to lead the Fallout franchise. Together, the teams will build on their longstanding relationship and the early work already underway on a new Fallout project, with more to share in the months ahead. This structure supports the franchise-led model we've been strengthening while keeping accountability for both the studio and the franchise clear."
Braff reportedly concludes by acknowledging Obsidian's "extraordinary creative talent" and long history of memorable games, emphasizing that she has "great respect" for what the team has built.
Back in July, as part of Microsoft's ongoing restructuring of Xbox , Obsidian laid off at least 52 workers . The studio was one of many caught in the first round of job cuts made by the parent company, which totaled to 1,600 during the first month.
A few days later, Fallout franchise director Todd Howard said that Bethesda Game Studios and Obsidian were set to collaborate again on a new Fallout game after previously working on Fallout: New Vegas together. "The timing is right" for the project, he added, as the studio currently has Fallout 5 in preproduction and remasters of Fallout: New Vegas and Fallout 3 on the way.
Time will tell how much of Obsidian's acclaimed creative identity will be present in said project—an identity that has been supported by clear tools and processes that may not easily translate to Bethesda's own game development methods.
About the Author
Contributing Editor, News, GameDeveloper.com
Diego Nicolás Argüello is a freelance journalist and critic from Argentina. Video games helped him to learn English, so now he covers them for places like The New York Times, NPR, Rolling Stone, and more. He also runs Into the Spine, a site dedicated to fostering and supporting new writers, and co-hosted Turnabout Breakdown, a podcast about the Ace Attorney series. He’s most likely playing a rhythm game as you read this.