Microsoft puts Obsidian under Bethesda while its current projects continue
Microsoft is expanding Bethesda’s remit to include Obsidian Entertainment. Obsidian will continue work on Grounded and a new Fallout project being developed with Bethesda Game Studios.

Image: pcgamer.com · Author: https://www.pcgamer.com/author/joshua-wolens/ · source articleEditorial excerpt for news reporting
Microsoft has placed Obsidian Entertainment under Bethesda Softworks. Obsidian will continue working on its existing projects.
Those projects include Grounded and a new Fallout game being developed in collaboration with Bethesda Game Studios.
Obsidian’s current projects remain
The announcement does not say that either project has been cancelled or changed. It states that Bethesda’s remit will expand to include Obsidian.
The article questions the rationale for the arrangement, arguing that Bethesda and Obsidian have different creative interests, approaches and studio traditions. Their shared links are identified as role-playing games and work on Fallout projects.
The piece also criticises Microsoft for adding another management layer despite the company’s stated commitment to reducing bureaucracy. The source provides no further official explanation for the restructuring.
What we know
- Obsidian Entertainment now falls under Bethesda Softworks’ remit.
- The studio will continue developing Grounded.
- Obsidian and Bethesda Game Studios are collaborating on a new Fallout project.
- The article describes the two studios as creatively and organisationally different.
What is being verified
- The newsroom is checking the report that obsidian Entertainment now falls under Bethesda Softworks’ remit.
- Reporting from PC Gamer is being compared; a second independent confirmation is not yet available.
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