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Developer Obsidian Hit Hard by Layoffs, Next-Gen Game Canned

March 14, 2012 Written by Alex Osborn

Obsidian Entertainment, the development team behind Fallout: New Vegas, Dungeon Siege III and the upcoming South Park RPG have faced a substantial round of layoffs that will prevent the company from moving forward on a next-gen title they had planned.

All of the upsetting details can be found on the Obsidian forums as well as posts on Twitter, including one from Andre Nguyen, which reads:

Fellow Obsidianites who were laid off today…I was lucky, but I’ve been on the other end of that. Your talents will take you far! #keepgoin

According to a tip received by Joysiq, the layoffs were so severe that an upcoming next-gen project had to be scrapped. The tip also indicates that the South Park team wasn’t immune to the layoffs either, as the progress on the upcoming RPG will likely be hindered as well.

Another project canceled, this time for a future next-gen project and the layoffs impacted that team, plus the existing South Park team. Approximately 20-30 people from all disciplines, including one person who started yesterday, as well as one who started last week.

This isn’t the first time that Obsidian has faced a cutback like this, as a similar situation happened to the team last year.