Obsidian Entertainment

According to IT Home, IGN reported on September 23 that after reorganizing Xbox game operations, Obsidian Entertainment was incorporated into Bethesda's management structure, while the Obsidian Studio will retain its creative identity and leadership. Jill Braff's internal memo states Feargus Urquhart and the Obsidian leadership will continue to run the studio, with Bethesda Game Studios still overseeing the Fallout series and a new Fallout project in early development.

Microsoft announced a new round of layoffs totaling 268 employees, largely from Xbox Game Studios, as part of a broader restructuring. The changes include reorganizing multiple studios under new management, with Halo development moving to a team under Activision. Undead Labs confirmed significant layoffs following its separation from Xbox.