Xbox cuts 3,200 jobs — Obsidian loses 25% of staff and drops Avowed sequel

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This week, Xbox announced a sweeping overhaul of its business that will see the company cutting 3,200 total jobs by next summer. That decision has already led to catastrophic results for studios under Xbox that have reportedly been gutted, including Doom developer Id Software. Obsidian Entertainment especially took a hit as part of the first layoff wave, losing 25% of its staff amid a major shake-up in the studio’s direction. According to a Bloomberg report , the remaining team has been tasked with making a new Fallout game as Xbox tightens its focus on its biggest IP. As a result, that directive reportedly means the team will be pushing aside some projects it was working on, including a sequel to 2025’s Avowed .