Following Microsoft’s mass layoffs that cut roughly a quarter of Obsidian’s staff, the studio is pivoting to a new Fallout title while asserting that its creative DNA remains unchanged. Outer Worlds 2 director Brandon Adler defended the studio’s legacy and dismissed critics who claim Obsidian has lost its edge.

Key Takeaways

  • Obsidian lost about 25% of its workforce due to Microsoft layoffs.
  • The upcoming Fallout project will be led by the same core team that created New Vegas and KOTOR 2.
  • Director Brandon Adler insists the studio’s DNA is still the same.

Last week, Obsidian Entertainment saw a dramatic reduction in staff after Microsoft’s sweeping layoffs, shedding roughly one‑quarter of its workforce. The cuts affected both the Avowed and The Outer Worlds 2 development teams, sparking widespread industry speculation. Reports soon emerged that the studio was shifting focus to a new Fallout game, with New Vegas director Josh Sawyer at the helm, while the planned Avowed sequel was effectively shelved.

Brandon Adler’s Public Response

Outer Worlds 2 director Brandon Adler took to LinkedIn to describe the week as “extremely difficult.” He mourned not only the loss of talented developers but also several close friends, emphasizing the human cost of corporate restructuring. “If you’re looking to hire any of these former Obsidian devs, you’re hiring some of the best people around – both professionally and personally,” he wrote, underscoring the caliber of talent that remains.

The Studio’s Core DNA

Adler highlighted that many senior leaders and directors at Obsidian are the same individuals who worked on landmark titles such as The Outer Worlds, Pillars of Eternity, and, most notably, Fallout: New Vegas. “The through‑line from KOTOR 2 to our current games is pretty clear,” he noted, reinforcing the continuity of creative vision. While acknowledging that the studio has evolved over two decades, Adler insisted, “The DNA at Obsidian is the same as it always was—the same DNA that created KOTOR, New Vegas, NWN2, and The Stick of Truth.”

Critics vs. Supporters

In the wake of the layoffs, a wave of “cold‑take” commentators emerged, claiming that Obsidian is no longer the powerhouse it once was. Adler dismissed these opinions as uninformed, pointing out that many critics lack any real understanding of the contributions made by the studio’s veterans. “The number of times I’ve seen people, with no understanding of who has worked on our previous games, talk about how Obsidian isn’t who they used to be… is staggering,” he wrote.

Looking Ahead

The announced Fallout project has reignited hope among fans who have been waiting for a spiritual successor to New Vegas. Adler expressed optimism, stating that despite the painful upheaval, the team remains proud of its heritage and eager to demonstrate that same spirit in future releases. If the new title lives up to the legacy of its predecessors, it could restore Obsidian’s standing at the forefront of RPG development.