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First reported by Variety
Xbox to Lay Off 3,200 Employees and Sell Four Studios in Major Restructure

Xbox layoffs cut 25% of staff at Obsidian Entertainment, The Outer Worlds 2 studio

By

Austin Manchester

2h ago· 3 min readenNews

Summary

Obsidian Entertainment, the studio behind The Outer Worlds 2, was hit hard by Microsoft's Xbox layoffs, losing approximately 25% of its staff. The cuts affected around 80 employees from a studio of roughly 300 people, despite Obsidian having multiple projects in development including The Outer Worlds 2, Avowed, Grounded, and Pentiment. The layoffs are part of broader Microsoft gaming cuts that have impacted thousands across Xbox, Bethesda, and Activision Blizzard in 2024.

Source

polygonXbox layoffs cut 25% of staff at Obsidian Entertainment, The Outer Worlds 2 studiopolygon.com

Key quotes

· 3 pulled
Obsidian Entertainment has been hit hard by the latest round of Xbox layoffs, losing approximately 25% of its staff.
The cuts come despite the studio reportedly having several projects in the pipeline, including the highly anticipated The Outer Worlds 2.
The layoffs are part of a broader trend of job cuts across the gaming industry in 2024, with Microsoft alone cutting thousands of positions across Xbox, Bethesda, and Activision Blizzard.
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Obsidian Entertainment lost 25% of its staff due to the Xbox layoffs despite reportedly having several projects in the pipeline.

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