Obsidian Entertainment

Obsidian Entertainment

Develops narrative-driven RPGs with player agency

Overview

Obsidian Entertainment is a video game developer based in Irvine, California, focused on creating role-playing games. Its titles, including The Outer Worlds, Pillars of Eternity, and Grounded, offer rich stories, deep character development, and choices that affect how the game unfolds, in both single-player and multiplayer modes. The company designs games and earns revenue through game sales, downloadable content, and in-game purchases, often working with publishers like Microsoft and Private Division for distribution. What sets them apart is a strong emphasis on player agency and narrative-driven design, giving players meaningful control over the world and its characters. With a proven track record and passionate fan base, Obsidian’s goal is to deliver engaging RPG experiences that invite players to explore and shape immersive game worlds.

About Obsidian Entertainment

Simplify's Rating
Why Obsidian Entertainment is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Consumer Software

Entertainment

Gaming

Company Size

201-500

Company Stage

Seed

Total Funding

$4.9M

Headquarters

Irvine, California

Founded

2003

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Simplify's Take

What believers are saying

  • Grounded 2 launched on PlayStation 5 August 11, 2026, expanding audience beyond Xbox and PC.
  • Avowed reached PlayStation 5 in February 2026, proving Obsidian can monetize across competing console ecosystems.
  • Bethesda confirmed a new Obsidian Fallout project on July 17, 2026, restoring a premium marquee franchise pipeline.

What critics are saying

  • Microsoft cut roughly 25% of Obsidian in July 2026, including senior staff and recruiter roles.
  • Bethesda now supervises Obsidian after September 22, 2026, shrinking studio autonomy and forcing franchise priorities.
  • Avowed sequel cancellation shows existential dependence on Xbox strategy; one corporate pivot can erase entire product lines.

What makes Obsidian Entertainment unique

  • Obsidians narrative RPG DNA still differentiates it; Avowed 2.1 added New Game Plus on March 25, 2026.
  • Grounded 2 pairs survival co-op with constant early-access iteration, including Into the Abyss on August 11, 2026.
  • Josh Sawyer’s Fallout pedigree preserves elite choice-driven design, now embedded inside Bethesda’s franchise machine.

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Funding

Total Funding

$4.9M

Below

Industry Average

Funded Over

2 Rounds

Seed funding is usually the first official round after pre-seed, when a startup has a prototype or concept. It’s typically used to develop the product, test the market, and start building the team. Investors here are often angel investors or early-stage venture capitalists.
Seed Funding Comparison
Above Average

Industry standards

$3.3M
$2M
Netflix
$2.3M
Instacart
$3M
Robinhood
$4.4M
Obsidian Entertainment

Benefits

Remote Work Options

Paid Vacation

Wellness Program

Mental Health Support

Flexible Work Hours

Conference Attendance Budget

Professional Development Budget

Stock Options

Company Equity

401(k) Retirement Plan

401(k) Company Match

Family Planning Benefits

Fertility Treatment Support

Adoption Assistance

Parental Leave

Paid Holidays

Paid Sick Leave

Vacation

Growth & Insights and Company News

Headcount

6 month growth

↑ 0%

1 year growth

↑ 0%

2 year growth

↑ 3%
GamesRadar+
Sep 22nd, 2026
Bethesda is taking control of Obsidian to work on a new Fallout game amid Xbox Game Studios reshuffle.

Bethesda is taking control of Obsidian to work on a new Fallout game amid Xbox Game Studios reshuffle. Published 1 hour ago No news on what it is just yet, though Bethesda Game Studios is now managing Obsidian Entertainment - news that comes just two months after the studios unveiled their mysterious, collaborative new Fallout game. Xbox Game Studios has managed Obsidian for over seven years now, following the acquisition of the legendary RPG developer in November 2018. The team delivered Grounded and its early access sequel, Pentiment, Avowed, and The Outer Worlds 2 during this time. While the change in leadership is certainly big news, it does make a degree of sense. Bethesda is of course the the studio behind Fallout and The Elder Scrolls, franchises that Obsidian and its leadership are strongly aligned with. This news is especially intriguing right now, seeing as Illusioncode know there are various projects in the works currently that are relevant to both teams. Latest Videos FromGamesRadar+ Marvel's Wolverine 60 second review Marvel's Wolverine is undeniably impressive in places, but there are aspects that are lacking, and hold it back from a true success. There's the new Fallout game that Bethesda confirmed it was working on alongside Obsidian back in July - but it's not clear which Fallout game this is. In the same breath, Bethesda also had said Fallout 5 is in pre-production and unveiled both Fallout 3 and Fallout: New Vegas remasters as well. So, could it be Fallout 5 the two are collaborating on? I'd wager it's more likely to be the Fallout: New Vegas revamp, seeing as Obsidian headed the original back in 2010, or potentially something else entirely. It's exciting news nonetheless, especially when the industry is otherwise suffering quite a difficult time. After all, Microsoft's plans to cut 3,200 employees at Xbox hit both Bethesda and Obsidian, with the latter reportedly seeing around 25% of its studio impacted. Following 1,600 layoffs taking place earlier this year, another 268 layoffs (of that total 3,200) were announced today, as was news that Rare, World's Edge, and the Halo franchise will be moving under operational control of Activision Blizzard. I'll be keeping my own fingers crossed for what's to come from the dynamic duo now that they're working more closely together than before, that's for certain. Who knows - perhaps Illusioncode'll see something entirely new come from the two rather than just a remaster. Only time will tell for sure. Searching for more new games to keep on your radar? Browse through its roundup of all the upcoming Bethesda games to look forward to. Staff Writer After spending years with her head in various fantastical realms' clouds, Anna studied English Literature and then Medieval History at the University of Edinburgh, going on to specialize in narrative design and video game journalism as a writer. She has written for various publications since her postgraduate studies, including Dexerto, Fanbyte, GameSpot, IGN, PCGamesN, and more. When she's not frantically trying to form words into coherent sentences, she's probably daydreaming about becoming a fairy druid and befriending every animal or she's spending a thousand (more) hours traversing the Underdark in Baldur's Gate 3. If you spot her away from her PC, you'll always find Anna with a fantasy book, a handheld video game console of some sort, and a Tamagotchi or two on hand.

TheGamer
Sep 22nd, 2026
Xbox announces next wave of layoffs, puts Obsidian under Bethesda, Rare under activision.

Xbox announces next wave of layoffs, puts Obsidian under Bethesda, Rare under activision. Published Sep 22, 2026, 10:11 AM EDT Rhiannon (she/her) is the Deputy News Lead and Chief Reporter at TheGamer. You may have heard her on the BBC or read her words at TechRadar Gaming and TechRaptor. She won MCV's Journalism Impact for Women in Games in 2025. At TheGamer, you will often find her chatting to game developers, writers, and actors about their crafts. This includes a deep dive into Cyberpunk 2077's narrative, and a series on the making of the Fable trilogy. She also follows industrial action and existential threats to its workers, particularly the use of generative AI. As part of this, she's explored how AI Darth Vader sets a dangerous precedent, and was one of the first reporters to look into generative AI dating companions. Xbox has announced the next phase of its ongoing "reset", resulting in another wave of layoffs and a proposed studio closure. However, this time, the move will also include mergers and other forms of restructuring. One of the most shocking moves will see Obsidian work under Bethesda, working on Grounded and its own Fallout game. Similarly, Activison will now run Rare, and take over the Halo series. Halo Studios as Gamerant know it is gone, Ninja Theory is likely closing down, and other Xbox studios are merging. This was just revealed publicly in a statement from Xbox's Matt Booty. Here, he reveals that there will be 268 job cuts, which will bring Gamerant to three quarters of the planned cuts as part of this "reset". Halo Studios appears to have been hit worst of all, and isn't even running the Halo series anymore. Those duties are going over to Activision, which will be developing the next Halo game. Halo Studios, on the other hand, will be "supporting the Halo community and games in-market". On top of this, Activision will be taking over Rare, as well as Age of Empires developer, World's Edge. The statement continues: "Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios." While currently unconfirmed, that wording would suggest that Xbox has no interest in Obsidian's own IPs, as there is no mention of future Avowed and The Outer Worlds content here. Similarly, Playground and Turn 10 are merging. The only franchises mentioned here are Fable and Forza. Lastly, two deals between Xbox and Ninja Theory have fallen through. As a result of this, there will now be a consultation on a proposed closure. Xbox says it will be "continuing to explore other paths forward", but this update certainly doesn't sound promising. "Today, our focus should be on supporting those affected and treating one another with care and respect," Booty concludes. "I will spend time with our studios over the next week. At our October 6 town hall, we will come together as an ALL-XBOX team to reflect on our progress and look ahead to one of the strongest game lineups in our history." This comes shortly after Xbox had bagged itself some goodwill by revealing its partnership with Kojima Productions, saving the game Physint. The disc-to-digital scheme had also been a hit, right as Sony comes under fire for scrapping physical releases. Now, it seems like these announcements were planned to mask the bad news Xbox knew was coming - a similiar strategy Gamerant saw play out before Xbox's previous round of layoffs earlier this year. * Date Founded - April 4, 1975 * CEO - Satya Nadella * Subsidiaries - activision blizzard, Microsoft Studios, Mojang Studios, Microsoft Game Studios, Xbox Game Studios * Consoles - Xbox, Xbox One, Xbox 360, Xbox One X, Xbox Series X, Xbox Series X|S * Services - Xbox Game Pass * Headquarters - Redmond, Washington, United States

Dork
Sep 12th, 2026
Bethesda has confirmed 'Fallout 5' and classic 'Fallout' remasters.

Bethesda has confirmed 'Fallout 5' and classic 'Fallout' remasters. 'Fallout 5' is in pre-production, while remasters of 'Fallout 3' and 'Fallout: New Vegas' are planned for modern platforms. Bethesda has confirmed that 'Fallout 5' is in pre-production, with remasters of 'Fallout 3' and 'Fallout: New Vegas' also planned for modern platforms. Polygon reports that the sequel is Bethesda's "long-range destination" as the studio works on multiple projects in the series. Bethesda said in its summer announcement: "We have multiple Fallout projects in active development right now." The remasters will revisit Bethesda's 2008 Washington, D.C.-set 'Fallout 3' and Obsidian Entertainment's 2010 Mojave-set 'Fallout: New Vegas'. Bethesda has not announced release windows or further details for either project. Polygon also reports that Obsidian is working on a separate new 'Fallout' project. Elsewhere, Bethesda is planning 'Raven Rock', a major 'Fallout 76' expansion due in 2027 that will serve as a prequel to 'Fallout 3'. The studio will not hold a traditional Fallout Day broadcast in 2026, instead planning a live event in Washington, D.C. for the series' 30th anniversary in 2027. The news follows Dork's coverage of the upcoming second edition of tabletop game 'Fallout: Wasteland Warfare', which is being rebuilt with a stronger focus on solo play. Watch's before doors sessions. Intimate, stripped-back live sessions filmed moments before the doors open. Raw sound, real rooms, no second takes. Subscribe on YouTube so you never miss a new one.

eGamers.io
Aug 27th, 2026
Fallout 5 confirmed, but Bethesda's reveal left fans cold - And honestly, fair enough.

Fallout 5 confirmed, but Bethesda's reveal left fans cold - And honestly, fair enough. Last Updated: August 27, 2026 Todd Howard made a Reddit post. That's it, that's the story - and anyone who has tracked Bethesda over the last ten years knows why that qualifies as news on its own. This is the studio behind The Elder Scrolls V: Skyrim and the Fallout games, a series it wrested creative control of from Obsidian Entertainment, and it has spent the past few years saying next to nothing while its fanbase waited on its marquee projects. Howard finally cracked the silence. What Bethesda quietly confirmed in July. In July, the company published an official roadmap post on its website. Fallout 5 sits in pre-production, and it's being developed on the Creation Engine 3. That wasn't all. Remasters of Fallout 3 and Fallout: New Vegas are both in the works. On top of that, Bethesda and Obsidian Entertainment are reportedly collaborating on an entirely new Fallout game, although almost nothing has been said about it. It reads well on paper. The problem: The Elder Scrolls VI holds the top spot on Bethesda's priority list right now, so every single one of those Fallout projects sits years down the road. Eight years and not even a release window. The Elder Scrolls VI got its first reveal back in 2018 by way of an extremely short teaser trailer. Eight years on, there's still no confirmed release window - not even an approximate one - and a good chunk of the audience has decided it may still be years off. Starfield, the studio's newest RPG, was widely written off as a flop in the meantime. Updates keep arriving for it regardless. The same goes for Fallout 76. All of that sets the stage for Howard's charm offensive. Howard goes to r/Games. To flesh out the announcement, Howard headed over to r/Games in person. "Hey Reddit. I'm a professional lurker and read your comments all the time. Many here do and we deeply appreciate all the passion for our work. I know I don't really post, and we're usually very quiet. Today's info was an attempt at changing that and letting everyone know what we've been working on the past several years, and a look at what's coming. So know we're constantly listening and keep telling us how to be even better. You'd be surprised how many great ideas I get from Reddit. So upvote your favorite and we'll do it. Maybe," Howard said. That closing "Maybe" is carrying an awful lot of weight. The comments were not charmed. Fans, still bruised by the long stretch without news, turned up in the replies with receipts in hand. "Todd Howard when Microsoft suddenly realizes waiting two decades for a new Fallout is a dumb idea," read one reply. Someone else homed in on the remasters: "I'd hope this new energy includes better performance from the 3 and NV remasters. Oblivion is abandoned and its soured my hype for Fallout." Another was blunter still: "Do recall they announced ES6 eight years ago as a ploy. Expect nothing from Bethesda unless they have s*it to show." No trailer, no images, no date. And here's what stops the whole thing from landing: no trailers accompanied the reveal, and no promotional images either. Just a post on a website and a comment on Reddit. Which leaves fans exactly where they've stood since 2018 - staring down an empty road, hoping something finally appears on it.

Chief Papers
Aug 23rd, 2026
I played Avowed in 2026: A tasting menu, not Skyrim's buffet.

I played Avowed in 2026: A tasting menu, not Skyrim's buffet. Avowed is not Skyrim: Obsidian's first-person fantasy RPG swaps sandbox sprawl for a focused, story-heavy adventure with sharper narrative pacing. I rolled into Eora expecting a Bethesda-sized theme park and walked out with a focused, story-heavy adventure that kept whispering, "I'm not Skyrim." Since Avowed launched on February 18, 2025, as a first-person fantasy RPG set in the Pillars of Eternity universe, every corner of the internet has compared it to The Elder Scrolls. A year later, in 2026, I finally understand why Obsidian kept waving that comparison away like a party guest who doesn't want to be handed the karaoke mic. If Skyrim is an all-you-can-eat buffet where you can ignore the main quest and stack cheese wheels for six hours, Avowed is more like a plated tasting menu with a chef who really wants you to notice the narrative sauce. That isn't a failure. It's a deliberate fork in the road. The Skyrim comparison was always inevitable. Obsidian worked on Fallout: New Vegas, so gamers have long treated the studio as the favorite ex of Bethesda's open-world model. When Avowed was announced back in 2020, it immediately became the temporary emotional support RPG for fans still waiting for The Elder Scrolls 6, which was announced in 2018 and has since turned waiting into extreme sport. In a PCGamesN interview, game director Carrie Patel admitted that comparisons to Skyrim were impossible to escape for a first-person fantasy RPG. But she framed Avowed as "our fantasy take on The Outer Worlds" rather than an Elder Scrolls clone. That comparison makes much more sense. The Outer Worlds was inspired by Fallout but compact and story-driven; Avowed does something similar inside Eora. Smaller scope, sharper teeth. Obsidian didn't try to recreate Daggerfall's Great Britain-sized map or Skyrim's sandbox openness. Patel stressed a "more focused experience, something that feels a little more curated," with constraints that protect pacing. As a player, I felt this almost immediately. Avowed doesn't let me wander off for nine days to become a vampire blacksmith; it keeps tugging me back toward its central narrative. That tighter design is like handing me a laser-guided story missile instead of setting off a fireworks barge without a captain. Bethesda's approach can be dazzling, chaotic, and weirdly wonderful. Obsidian's approach cuts a cleaner path and asks me to care about the destination. The Outer Worlds DNA, not a Bethesda clone. The structure borrows more from The Outer Worlds than from Skyrim. Though Avowed's tone aligns with Pillars of Eternity, players who have wandered The Outer Worlds' smaller hub zones will recognize the rhythm: dense areas, meaningful choices, and characters that don't exist just to fill map space. Obsidian is also making The Outer Worlds 2, so the studio clearly believes in its winning formula and is sticking with it. Here's a quick comparison from my 2026 perspective: | Feature | Avowed | Skyrim | The Outer Worlds | | World design | Focused, curated regions | Massive open sandbox | Compact hubs/planets | | Tone | Serious Pillars fantasy | High fantasy freedom | Satirical sci-fi | | Install size | ~75GB | Smaller at launch, huge when modded | Small-to-medium | | Longevity | Story and choices | Mods, open-ended chaos | Replays for endings | A blessing or A curse? Smaller games have real advantages. Avowed's 75GB install felt like a dream next to Starfield and Baldur's Gate 3 both ballooning past 100GB. The map is denser, with fewer bland stretches of "realistic" nothing between points. Obsidian's writers get more room for storytelling and moral decisions, which is exactly what they're famous for. The trade-off is longevity. Skyrim has been alive for over a decade because its openness and modding community turned it into a fantasy operating system. Avowed won't get that same endless second life. Trying to use Avowed as an Elder Scrolls replacement is like using a scalpel to chop down a redwood: the tool is excellent, but the job is wrong. So, should Elder Scrolls fans care? Patel mentioned there is still "an appetite for games that are big sprawling RPGs with a ton of openness," and I agree. That appetite is why people still play Skyrim in 2026. Structured design has become more common, with even Baldur's Gate 3 split into three acts, but it doesn't satisfy the same itch as a completely open world. Avowed scratches a small corner of that itch. It's a first-person fantasy RPG with real writing and a world worth exploring. But it won't be Elder Scrolls 6, and it won't fill the hole left by that 2018 teaser. Obsidian isn't trying to answer Bethesda; it's making its own thing. After a year, I respect that. I just still keep one eye on the horizon for a proper sandbox apocalypse. As reported by Newzoo, player expectations often split between sprawling sandbox "forever games" and curated, narrative-forward RPGs - context that helps explain why Avowed feels intentionally closer to a compact, choice-driven experience than a mod-fueled open-world platform like Skyrim. Looking at Avowed through that lens, its tighter regions, denser quest pacing, and "tasting menu" structure read less like missing features and more like deliberate product positioning: a story-first RPG designed to deliver completion-friendly depth rather than endless systemic wandering.

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