Report: Obsidian losing around one quarter of its staff to 'Xbox reset'

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Game Developer · 3 min read · studios

Obsidian Entertainment laid off 60-70 employees, roughly one quarter of its staff, in Xbox's broader restructuring. Senior talent including The Outer Worlds art director were impacted, though Grounded 2 and The Outer Worlds 2 DLC remain in production.

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Asha Sharma Avowed Danielle Riendeau Grounded Grounded 2 Microsoft Obsidian Entertainment Pentiment The Outer Worlds The Outer Worlds 2 Xbox Xbox Game Studios

Appeared in 2026-07-07.