Bethesda Game Studios head Jill Braff told staff that Obsidian Entertainment‘s move under Bethesda is “primarily a change in reporting structure,” according to a memo obtained by IGN and amplified by Polygon on September 23, 2026.
What the memo says
Braff wrote that Obsidian’s “creative identity and strengths that make Obsidian distinct will remain at the core of their studio and work.” Feargus Urquhart and Obsidian’s leadership team “will continue to lead Obsidian,” with the studio reporting to Braff. Bethesda Game Studios “will continue to lead the Fallout franchise,” while the teams build on “early work already underway on a new Fallout project, with more to share in the months ahead.”
Braff also said the structure supports the “franchise-led model” Microsoft has been strengthening, and that leadership is “not resetting our roadmap or asking teams to change what they’re focused on.”
Soft backdrop
The note follows Microsoft’s September 22 Xbox reorganization — the same wave that included the wider studio reshuffle covered separately as the Booty / Halo-to-Activision reset — which listed Obsidian reporting into Bethesda. This package leads on Braff’s staff memo, not a rehash of that broader reset. No Fallout title, ship date, or Obsidian IP cancellation appears in the published memo.
