Xbox Lays Off Approximately 25% of Obsidian Entertainment's Staff

Microsoft has reportedly laid off about a quarter of Obsidian Entertainment’s staff as part of broader Xbox studio restructuring efforts. Despite the cuts, development on Grounded 2 and DLC for The Outer Worlds 2 will continue.

By Jay Peters · The Verge · July 7, 2026, 22:22 UTC

Xbox Lays Off Approximately 25% of Obsidian Entertainment's Staff

Tickers: $MSFT

Topics: Gaming Industry Microsoft Workforce Reductions Xbox

Read the full article at The Verge

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