O

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.

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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 SoftwareEntertainmentGaming

Company Size

201-500

Company Stage

Seed

Total Funding

$4.9M

Headquarters

Irvine, CA

Founded

2003

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What believers are saying

  • Grounded 2's August 11, 2026 Into the Abyss update expanded PS5 reach and engagement.
  • Bethesda confirmed July 17, 2026 Obsidian is co-developing a new Fallout project.
  • The Outer Worlds 2 Patch 1.2.0.0 on June 24, 2026 added custom difficulty and photo mode.

What critics are saying

  • Microsoft cut 52 Obsidian workers on July 9, 2026, gutting senior production depth.
  • July 2026 layoffs and canceled projects like Avowed 2 signal pipeline fragility through 2027.
  • Bethesda now controls Obsidian's reporting line; autonomy erosion threatens recruitment and eventual creative attrition.

What makes Obsidian Entertainment unique

  • Obsidian ships choice-heavy RPGs: Avowed, The Outer Worlds 2, and Pentiment-style storytelling.
  • Feargus Urquhart's team keeps a distinct narrative identity under Bethesda's September 2026 reporting change.
  • Grounded 2 proves Obsidian can also build live content systems, not only dialogue trees.

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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
$2.3M
$3M
$4.4M

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

Growth & Insights and Company News

6 month growth

-1%

1 year growth

1%

2 year growth

2%
Arcader
Nov 2nd, 2026
With Avowed's 1.5 update, it finally gets Steam Deck verified, as well as some fancy new Ranger and Fighter moves.

With Avowed's 1.5 update, it finally gets Steam Deck verified, as well as some fancy new Ranger and Fighter moves. Obsidian Entertainment has been quietly beavering away on its well-received fantasy action-RPG Avowed, and the latest of the studio's toils are now available in its newly released 1.5 update, introducing Steam Deck verification, new class abilities, and more.

3DMGAME
Oct 28th, 2026
Bethesda confirms Fallout 5 will acknowledge Amazon series events as part of the same world.

Bethesda confirms Fallout 5 will acknowledge Amazon series events as part of the same world. 3DM2026-10-2809:25:31 Bethesda head Todd Howard has confirmed that Fallout 5 will not ignore the plot developments from Amazon's live-action Fallout series. The new game takes place in a world where the series' stories and events have already happened or are currently unfolding, and Bethesda will factor this into its planning for the next mainline entry. This means Fallout 5 shares the same continuity as the live-action series. The show isn't simply a retelling of existing game plots; its new characters and events are part of the overall Fallout lore. However, Bethesda has not yet announced the specific setting for Fallout 5. It is only confirmed that the timeline falls during or after the events of the series, and whether series characters like Lucy MacLean or the Ghoul will appear in the game remains unconfirmed. Fallout 5 is still in pre-production and won't be released for quite some time. Bethesda is currently prioritizing The Elder Scrolls VI, with both titles set to use Creation Engine 3. Following Microsoft's latest Xbox restructuring, Obsidian Entertainment was placed under Bethesda's leadership but retains its own management and creative identity. Obsidian has confirmed it will collaborate with Bethesda on another Fallout game, a project separate from Fallout 5. Detailed report from foreign media: Fallout 5 remains one of the most anticipated RPGs currently in development. Bethesda has clearly stated that developing this mainline sequel requires taking into account several major recent changes to the franchise. Players will have to wait a long time for the next single-player Fallout. This is hard to ignore, especially given the franchise's clear resurgence in popularity following the launch of Amazon's live-action series. While Bethesda continues to update Fallout 76 and works on other projects, Fallout 5 is still years away from release. Now, a key question worth watching is how Bethesda plans to handle the increasingly tight connection between the games and the TV series. Unlike many game adaptations, Amazon's Fallout doesn't just retell an existing story; it adds new characters and events within the established worldview. These additions will become part of the Fallout series' history. Season two will take the story to the New Vegas region, and season three is already in production. As the series progresses, its narrative impact on the future of the entire Fallout franchise grows ever larger. Bethesda's Todd Howard has confirmed that Fallout 5 will acknowledge the events that took place in Amazon's Fallout series. This also indicates that the game and the series share the same continuous timeline. Howard explained in a statement to the BBC that developments in the series will influence the next mainline game. He stated directly:"In short, yes. In the world of Fallout 5, the stories and events from the series have already happened, or are happening." Howard also stated that Bethesda is considering these changes brought by the series while planning Fallout 5. However, this doesn't mean series characters like Lucy MacLean or the Ghoul will definitely appear in the game. There's also no confirmation yet on where exactly Fallout 5 will be set. Howard only confirmed the timeline: the game's story will take place during or after the events of the series. His statement clarifies at least one important point: when Fallout 5 finally launches, the events of the series won't be treated as if they never happened. The TV show and the games exist in the same universe, and Bethesda will approach their relationship with this premise in mind. Meanwhile, Bethesda's recent restructuring has brought several important developments to the Fallout franchise. In Microsoft's latest Xbox reorganization, Obsidian Entertainment was placed under Bethesda's leadership. However, Obsidian will retain its creative identity and existing management structure. It has been confirmed that Obsidian is collaborating with Bethesda on another Fallout game. This is a significant development for Obsidian, the studio behind Fallout: New Vegas.This game is not Fallout 5; the two projects are separate. Bethesda has confirmed that Fallout 5 is still in pre-production. Of course, it will be a long time before players can actually get their hands on Fallout 5. Bethesda's current top priority remains The Elder Scrolls VI. Both this game and the next Fallout title are being developed using Creation Engine 3. In the meantime, there are plenty of other Fallout projects underway. Fallout 76 will continue to receive updates, remasters of Fallout 3 and Fallout: New Vegas are coming, and the next season of Amazon's Fallout series is also in production.

Anish Trix
Oct 25th, 2026
Bethesda says that Obsidian will maintain its "creative identity" as the studio moves under ZeniMax.

Bethesda says that Obsidian will maintain its "creative identity" as the studio moves under ZeniMax. When you buy through links on its articles, Future and its syndication partners may earn a commission. Amid the latest wave of updates at Xbox, which includes huge bombshells like Halo moving under Activision, anishtrix also got word that Obsidian, the developers behind Fallout: New Vegas, Avowed, and The Outer Worlds, are being moved under ZeniMax. For those keeping track, ZeniMax is the parent company of Bethesda, which, of course, all fits under the Xbox umbrella following the 2021 acquisition for $7.5 billion. anishtrix also recently learned that Obsidian would be making a new Fallout game, a project that no doubt will require deep collaboration between both Bethesda and Obsidian. Given that Xbox has owned Obsidian since 2018, I'm genuinely shocked it's taken this long, but with Asha Sharma's push to focus more on heavy-hitting IP, I'm glad something is happening, even though it's five years later than I'd have hoped. The big question remains, as I'm sure many have seen online, whether Obsidian will lose any and all autonomy under ZeniMax. Bethesda President Jill Braff has come out to clarify that this isn't the case. In an email obtained by Aftermath, she explains: "The creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work... 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." "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. This structure supports the franchise-led model we've been strengthening while keeping accountability for both the studio and the franchise clear." It's a relief, I'm sure, for many. However, it's also just something that anishtrix'll have to wait and see how everything pans out. The Fallout project is very clearly in its early days, and despite Todd Howard refuting claims of any bad blood between Bethesda and Obsidian, I think fans will tread on the side of caution and prefer to see results over words. Obsidian has extraordinary creative talent, deep expertise, and a long history of creating memorable games and experiences. I'm looking forward to working more closely with them. Bethesda President - Jill Braff Regardless of how you feel, it's hard to deny that Asha Sharma hasn't hit the ground running with Xbox. Whilst it's still early days in her tenure as CEO, I'm personally much more optimistic about the changes anishtrix is seeing, as opposed to those online who believe Xbox is consolidating studios in order to make the likes of ZeniMax and Activision more appealing for sale. Enough about my thoughts, though. Do let me know how you feel in the comments, and be sure to take part in its poll!

Instant Gaming
Sep 26th, 2026
The DLC for The Outer Worlds 2 is still in the works.

The DLC for The Outer Worlds 2 is still in the works. September 26, 2026 1:14 AM, by Thibaut - Presidentevil Having just come under Bethesda's ownership this week, Obsidian Entertainment appears to be heading toward a future almost entirely focused on Fallout. However, the American studio isn't forgetting its previous games, and there is new content currently in development. In fact, in a comment (through Idle Sloth on X), Obsidian confirmed that a new DLC for The Outer Worlds 2 is in development. The developer will share more information on this "in the near future", so Instant Gaming will need to be patient. In addition, Grounded 2 will also receive new content.

TrueAchievements
Sep 23rd, 2026
Obsidian will keep its "creative identity," Bethesda president says.

Obsidian will keep its "creative identity," Bethesda president says. With Obsidian now reporting to Bethesda as part of a big reshuffle at Xbox, Bethesda's president has minimized the move, calling it "primarily a change in reporting structure" Get cool Xbox stats for free Enter your Gamertag and start tracking your stats Published 3 hours ago Followtopics Earlier this week, Xbox announced it was laying off 268 employees and reorganizing various studios under the Xbox umbrella. Most notably, Rare and World's Edge now report to Activision, which is also developing the next Halo game over Halo Studios, while Avowed and Fallout: New Vegas developer Obsidian will become a part of Bethesda. Although Xbox's Matt Booty did state that Obsidian will continue working on its current projects, Grounded, and a new Fallout game being made with Bethesda Game Studios, many have wondered how much autonomy the developer will have under Bethesda. Well, in an email sent to Obsidian employees (thanks, Aftermath), Bethesda's president Jill Braff has somewhat downplayed the move, calling it "primarily a change in reporting structure" while also adding that the studio will keep its creative identity. "The creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work," Braff wrote. "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. 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. This structure supports the franchise-led model Trueachievements has been strengthening while keeping accountability for both the studio and the franchise clear. "I've had the opportunity to get to know Feargus Urquhart and his team over the past six years, and I have great respect for what they've built. Obsidian has extraordinary creative talent, deep expertise, and a long history of creating memorable games and experiences. I'm looking forward to working more closely with them." Back in July, Bloomberg reported that around a quarter of Obsidian's staff were laid off and that multiple projects at the studio, including Avowed 2, have been canceled. Not long after, it was announced that Obsidian would work on a new Fallout project alongside Bethesda Game Studios. It was also confirmed that a Fallout: New Vegas remaster is in the works. Going forward, it will be interesting to see where Obsidian fits within Bethesda and how much autonomy it retains. What are your thoughts on Obsidian now reporting to Bethesda? Let Trueachievements know down in the comments. Sean loves Xbox achievements and is committed to playing as many of the best RPGs, racing games, and first-person shooters on Xbox Game Pass as possible. Before joining TrueAchievements, Sean earned a degree in journalism from Solent University. Enjoy its Xbox coverage? Add TrueAchievements as a Preferred Source on Google News to see its Xbox stories, achievement guides, and data analysis in your feed.

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