A Bittersweet Launch for The Outer Worlds 2
The gaming world has been buzzing with anticipation for The Outer Worlds 2, set to launch on October 29, 2025. Developer Obsidian Entertainment is known for its incredible RPGs, and this sequel has been high on everyone’s must-play list. But what should be a time of celebration is now overshadowed by disturbing rumors. A post on Reddit, claiming to be from an employee, has alleged that a huge portion of the development team is being laid off, effective on the game’s release day.
This news, if true, is a gut punch not just to the developers who poured years into the game, but to the entire industry. It highlights a troubling trend where even successful projects don’t guarantee job security.
What the Rumors Say
The story broke on a Reddit forum for gaming leaks. A user, identified as an insider, shared that nearly the entire Outer Worlds 2 team had been individually informed of their termination. The post described a tense and quiet work environment, with employees afraid to speak openly for fear of losing their severance packages. This silence means the full scope of the situation might not be known until the layoffs actually happen.
The timing seems particularly cold. The speculation is that the decision was made to avoid negative press before launch and to capitalize on day-one sales. The post reads, “This atmosphere certainly dampens the excitement surrounding our launch celebration,” a heartbreaking sentiment from someone who should be celebrating a massive career achievement.
The Bigger Picture: A Troubled Industry
These rumored layoffs at Obsidian aren’t happening in a vacuum. The video game industry has been rocked by widespread job cuts over the past few years. From 2022 to 2025, tens of thousands of developers have lost their jobs across major companies like Ubisoft, Sony, and even Obsidian’s parent company, Microsoft.
The Reddit post connects the dots to a potential cause: a new mandate from Microsoft. Reports from earlier in the week suggested that Microsoft is pushing its Xbox division to achieve a 30% profit margin, a figure significantly higher than the industry average of 17-22%. This aggressive financial target is believed to be the driving force behind recent studio closures, project cancellations, and now, potentially, the layoffs at Obsidian. It paints a grim picture where creative endeavors are increasingly crunched by corporate financial goals.
What Does This Mean for Obsidian’s Future?
If the rumors prove true, it raises serious questions about the future of Obsidian Entertainment. Laying off a team right after they ship a major title can cripple a studio’s ability to support the game post-launch or move on to the next project. As one industry veteran, Fallout co-creator Tim Cain, recently warned, developers are not easily replaceable. When you lose experienced talent, you’re “left with a company where nobody knows anything.”
This isn’t the first concerning sign from the studio. Earlier in 2025, the game director for their other big title, Avowed, left the company after more than a decade. While turnover happens, losing key talent and entire teams simultaneously is a major blow. Fans are now left to wonder what this means for the future of the franchises they love.
Conclusion
The rumored layoffs for The Outer Worlds 2 team cast a long shadow over what should be a triumphant moment. It’s a stark reminder of the human cost behind the games we play. While we await official confirmation, the story serves as a cautionary tale about the state of the modern gaming industry. Success is no longer measured just by critical acclaim or fan love, but by ever-increasing profit margins that can put the creators themselves on the chopping block. As we boot up The Outer Worlds 2, it’s worth remembering the talented people who brought its universe to life, and hoping for a future where that dedication is rewarded with stability, not uncertainty.
Frequently Asked Questions (FAQs)
1. What are the layoff rumors surrounding The Outer Worlds 2?
A Reddit post from an alleged employee claims that nearly the entire development team for The Outer Worlds 2 has been told they will be laid off on the game’s release day.
2. Where did these rumors originate?
The rumors started on the subreddit r/GamingLeaksAndRumours from a user claiming to be an Obsidian Entertainment employee. The post has since been shared widely across social media and other gaming forums.
3. Has Obsidian or Microsoft confirmed the layoffs?
As of now, neither Obsidian Entertainment nor its parent company, Microsoft, has made an official statement confirming or denying the rumored layoffs. The information remains speculative.
4. Why would a studio lay off a team after a game’s launch?
The rumored reasoning is purely financial. Speculation suggests the company waited until after the launch to avoid negative publicity that could harm sales, and to cut costs immediately after the project’s primary development phase was complete.
5. Is this part of a larger trend in the gaming industry?
Yes. The video game industry has seen massive layoffs from 2022 through 2025, with tens of thousands of jobs lost across numerous major studios. This is seen as a widespread industry correction and restructuring.
6. What is Microsoft’s alleged role in this?
Recent reports claim Microsoft has set a high 30% profit margin target for its Xbox gaming division. The Reddit post suggests this aggressive financial goal is the direct cause of the pressure leading to these potential layoffs at Obsidian, which is an Xbox-owned studio.