Microsoft has restructured Xbox, resulting in significant layoffs affecting thousands of employees and the disbanding of four game studios, including Double Fine and Compulsion Games returning to indie status, while Ninja Theory and Undead Labs were sold. Obsidian Entertainment, initially thought to be unaffected, also faced layoffs but is reportedly developing a new Fallout game with Josh Sawyer as director. A member of Obsidian's leadership, Adler, expressed frustration over misconceptions about the studio's evolution, emphasizing that key figures from its past successes remain. He reassured fans that the core essence of Obsidian is unchanged, despite recent challenges. Adler acknowledged the emotional toll of the layoffs and expressed support for departing employees. Anticipation for Obsidian's new Fallout title is growing.