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Obsidian Entertainment losses 25% of staff on Xbox layoffs

Guido Salvador by Guido Salvador
July 6, 2026
in News, PC
0
Obsidian

Obsidian is better known for games like Fallout New Vegas, which is considered one of the best Fallout entries by many. Now they have faced some severe cuts that threaten to destroy the studio, and perhaps a wide chunk of the industry. This is a big threat, and cuts so massive like this shouldn’t even be happening in the first place. A rally of people who has been affected by this is protesting against the Microsoft cuts, and it might include a big chunk of people from Obsidian and even id Software. Job security is not a joke, but something that should be respected.

Obsidian might die

While not a certainty, this is a huge hit for Obsidian and the development of many games such as Elder Scrolls and even Fallout. Considering what has been happening in the industry we can expect things to end ugly for many huge players in it, while the indie side of gaming will keep rising further and bring more quality to the table as prices continue to rise while indies remain the cheaper option. Unfortunately the saddest part of this would be the lives that have been ruined by falling in the wrong side of spreadsheet, or even because “AI” decided it should be that way.

There should be a way to fix this but as we know it the game industry right now is dog eat dog world and now company will ever care about the little guy, that being us. I wish we could see a better ending out of this, perhaps at the very least the people that remain is capable enough to get some good stuff going on, but even that should be taken with a grain of salt. As Microsoft continues to ruin the lives of people, is it even fine to keep buying their products?

Tags: MicrosoftObsidian Entertainment
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id Software is destroyed by massive Xbox layoffs in 2026

Guido Salvador

Guido Salvador

I'm a player at heart who was always fond of writing my mind about the topics I likes as a hobby, gaming is a big passion of mine, Indie games and JRPGs being my preferred type of games.

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