Image credit: Private Division/2K Games

Obsidian, the legendary RPG studio behind The Outer Worlds, Avowed, Fallout New Vegas and other acclaimed games, is losing about a quarter of its workers. That is according to a new Kotaku report, citing sources familiar with the matter.

Obsidian was not directly named in Monday's sweeping layoffs at Xbox, which impacted 3200 jobs. However, a number of other Microsoft-owned studios who were not specifically mentioned have also been affected.

Somewhere between 60-70 roles are being cut, according to the report. The layoffs hit multiple disciplines, including, artists, designers, writers, producers, programmers, and QA testers. Some of those impacted have been with Obsidian for over a decade. The cuts also include senior talent, such as The Outer Worlds' art director, as well as, bizarrely "the studio’s only recruiter", per the report.

Image credit: Microsoft

Not all of the 3200 jobs eliminated as a result of Xbox's sweeping restructuring plan will take effect now. Only half, 1600, were let go, while the other half will be laid off over the course of the coming year. This is also true for Obsidian, which was hit in the first wave, losing most of those 60-70 people, with the rest coming later this year.

Writer and narrative designer Jay Turner is one of those affected. Turner, whose credits include Avowed, Dragon Age: Origins, and Mass Effect 2 called the brutal cuts "Microsoft sacrificial rituals" on BlueSky.

For now, work on Grounded 2 will continue, according to the report. Obsidian will also deliver more The Outer Worlds 2 DLC, but nothing beyond that is certain. Obsidian is said to be hosting an all-hands meeting today to clarify next steps with the remaining staff.

Obsidian was acquired by Microsoft in 2018. Since then, it has been one of its most active studios, shipping two The Outer Worlds games, two Grounded games, Avowed, and the one-of-a-kind Pentiment.

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