Xbox integrated Obsidian Entertainment into Bethesda in September 2026. The move occurred during a corporate reorganization and a round of layoffs at the company.
- Obsidian Entertainment reports directly to Bethesda president Jill Braff
- Feargus Urquhart and the Obsidian leadership team stay in their roles
- Bethesda Game Studios leads the Fallout franchise
- Both teams collaborate on a new Fallout project
Leadership Structure Updates
Jill Braff sent an email to employees to address the internal changes. She confirmed the studio keeps its core traits.
"The creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work"
Jill Braff, Bethesda President
"[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."
Jill Braff, Bethesda President
Franchise-Led Model
The corporate shift establishes a franchise-led approach for future development. Early work on the collaborative game is already underway.
