Storied RPG studio Obsidian is now a part of Bethesda. That news came alongside Xbox's latest round of layoffs and reshuffling, and it's not entirely clear what it means for the studio's future. Apparently, it'll be little more than "a change in reporting structure" – according to a leaked memo from Bethesda president Jill Braff, anyway.

"The creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work," Braff says in an email to employees, obtained by Aftermath. "[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."

Earlier this year, Bethesda and Obsidian announced that they were collaborating on a new Fallout game, 16 years after the two studios worked together on the beloved Fallout: New Vegas. That project became official shortly after behind-the-scenes reporting suggested that Microsoft had swooped in to kill Obsidian's Avowed sequel and put the devs to work on Fallout.

"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," Braff says in the leaked message. "This structure supports the franchise-led model we've been strengthening while keeping accountability for both the studio and the franchise clear."

For much of the past decade, Obsidian has put its resources into developing original IP, including The Outer Worlds, Grounded, and Pentiment, as well as a fresh take on its Pillars of Eternity series in Avowed.

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