Bloodbath at Xbox: Obsidian in the Crosshairs, id Software Veteran Weighs In

Xbox's long-standing struggle for dominance now looks like a sinking ship rescue mission. The future of Avowed, dreams of sequels, and Xbox's entire vision as an ambitious AAA game producer hangs in the balance. Can they turn this bloodbath around? Here's the full story.

Key Facts at a Glance

• Obsidian Entertainment cut from Xbox Game Studios portfolio.
• Avowed, planned AAA action RPG, suspended with uncertain future.
• id Software, once an industry titan, slashes workforce by 73% - 136 employees gone.
• John Carmack, id Software co-founder, comments on Microsoft's decisions.
• New AAA games in 2026 now cost around $400. And that's no joke.

The Full Story

Recently, Xbox's new boss Asha Sharma announced drastic cuts. Initially reported as 1,600 lost jobs, it turns out that was just the beginning. As part of the same bloodbath, id Software, once legendary, lost 136 employees - leaving only 49 still employed at this formerly mighty studio. Not a good sign for the future.

We can't forget that Obsidian Entertainment, the studio behind Fallout: New Vegas and other cult RPG classics, also got caught in these cuts. Now the future of their latest baby, Avowed, hangs by a thread. Will they find a new publisher? That remains to be seen.

Avowed was envisioned as a high-flying game, featuring an advanced combat system, deep crafting mechanics, and an open world full of secrets. Obsidian is known for their attention to narrative and character development, which was to be reflected in Avowed. Unfortunately, Xbox's decisions cast a shadow over these ambitions.

John Carmack, co-founder of id Software, expressed his surprise and concern. His comments on Microsoft's decisions are measured, but the underlying worry is clear. Carmack, known for his candor, emphasizes that such cuts may have long-lasting effects on innovation in the industry.

The Future of Obsidian and Avowed – Testing Times

Obsidian Entertainment now faces a significant challenge. Without Xbox Game Studios support, the studio must seek a new publisher for Avowed. There's a risk that without adequate funding, the project will be suspended indefinitely or even abandoned. This would be a blow not only to fans but to Xbox's portfolio as a whole.

Rumors of a new Fallout are still unconfirmed. It's true that Obsidian has experience with the series and theoretically could have a shot at creating another title. But for now, it's just speculation.

Under Asha Sharma's leadership, Xbox is planning further cuts. It's already known that some studios, like Compulsion Games and Undead Labs, will be closed and their employees moved to other projects. This all looks like more proof that Xbox can't manage its assets.

Technical Aspects and AAA Game Expectations

Modern AAA games, like the planned Avowed, require not only creative genius but also enormous financial investments. In the 2026 era, the production cost of such a title is estimated in hundreds of millions of dollars. The retail price of new AAA games hovers around $400, presenting a significant entry barrier for consumers.

Hardware requirements are also increasing. Gamers need high-end components to fully enjoy the graphical and mechanical capabilities of these games. The Xbox Series X/S, though powerful, must also keep up with the demands of the coming years. It's worth noting that the video game market evolves at a pace that requires continuous investment in new technologies.

History and Industry Impact

The video game industry has been evolving for decades, and studios like Obsidian and id Software are integral parts of its fabric. History is filled with moments when great studios had to face tough decisions. Today's cuts at Xbox are no exception. It's important to remember, however, that behind every layoff is a person whose life and career are changed.

The decisions made by Xbox have a broader context. In an era where competition is fierce, companies often make tough choices. Only time will tell if these cuts prove to be the right move for Xbox's future or just another step towards losing credibility as a producer of ambitious games.