Obsidian, working on new “Fallout” project, to keep creative independence under Bethesda—president explains in internal email

Following a major reorganization at Xbox, Obsidian has come under Bethesda's jurisdiction. In terms of management, it appears that current CEO Fergus Arkhart and others will continue to lead the company.

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Obsidian, Which Is Also Working on a New
Obsidian, Which Is Also Working on a New "Fallout" Project, Will Maintain Its Creative Independence Even After Joining Bethesda—President Explains in Internal Email
  • Obsidian, Which Is Also Working on a New
  • Obsidian, Which Is Also Working on a New
July 2026 Post

Several overseas media outlets are reporting that Bethesda President Jill Braff explained the future structure of Obsidian Entertainment—which will be transferred to Bethesda Softworks following Xbox’s organizational restructuring—in an email to employees.

Development Plans to Continue After Restructuring

Obsidian Entertainment is a game studio known for titles such as *Avowed* and *The Outer Worlds*. It is also known for developing *Fallout: New Vegas*, a spin-off of Bethesda’s *Fallout* series.

*Fallout: New Vegas*

In the Xbox division reorganization announced by Microsoft on September 22, it was revealed that Obsidian would be transferred to Bethesda’s jurisdiction. It was also reported that the studio is collaborating with Bethesda Game Studios on a new *Fallout* project.



According to international media outletsAftermathandIGN, Bethesda President Jill Braff explained in an email to employees that this transition is “primarily a change in the reporting structure.” She stated that Obsidian’s unique creativity and strengths will continue to be at the core of the studio and its projects.

Obsidian will continue to be led by its current management team, including CEO Fergus Arkhart, while Bethesda Game Studios will continue to lead the “Fallout” series. Additionally, according to the full text of the email published by IGN, Braff stated that he has no plans to restructure current development plans or ask teams to change the work they are currently undertaking.

Although details regarding the new *Fallout* project have not been revealed, Braff stated that he will have more to share in the coming months.In July, Jason Schreier, a reporter for the international media outlet Bloomberg, reported that Josh Sawyer—who served as director on *Fallout: New Vegas*—is expected to lead development on the new project.




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