While the rest of the gaming industry rushes headfirst into generative AI with predictably disastrous results, Obsidian Entertainment took a different approach. They rejected AI entirely and instead shipped three major games in 2025: Avowed, The Outer Worlds 2, and Grounded 2. It turns out the old-fashioned method of having talented humans make games still works pretty well.
We Haven’t Been Using It At All
In a November 2025 interview with GameFile, Obsidian Entertainment developers Josh Sawyer, Kate Dollarhyde, and Leonard Boyarsky discussed their writing process across multiple projects. When asked directly whether Obsidian uses generative AI in its writing, Sawyer was blunt: “It’s not something we’ve used.” Boyarsky added even more emphatically, “We haven’t been using it at all.”
This is a pretty significant statement coming from one of Xbox Game Studios’ most productive teams. Obsidian has 285 employees and just launched three fairly substantial games in the same calendar year. If any studio could claim they need AI to maintain that output, it would be them. Instead, they’re proving you don’t need algorithmic shortcuts to be prolific.
The Developer Who Regrets Ever Mentioning AI
The most telling moment in the interview came when Leonard Boyarsky addressed comments he made during a 2019 podcast where he speculated about AI-powered writing. Boyarsky said he was now tempted to smack his prior self “upside the head” for those comments. He noted that any such concept would quickly become “very unwieldy.”
That’s a pretty strong reversal from someone who was theoretically open to the technology just six years ago. What changed? Boyarsky and the rest of Obsidian have watched generative AI get deployed in actual game development across the industry, and the results have been an unmitigated disaster.
What Obsidian Actually Shipped in 2025
Obsidian’s 2025 lineup is genuinely impressive. Avowed, a first-person fantasy RPG, launched in February to positive reviews. The Outer Worlds 2, the sequel to their sci-fi RPG, followed later in the year. Grounded 2, the sequel to their backyard survival game, launched in early access and has been receiving regular content updates.
That’s three distinct games across three different genres, all developed simultaneously by teams within the same studio. For context, many AAA studios struggle to ship a single game in a year. Obsidian managed three, and they did it without relying on AI to generate dialogue, assets, or anything else.
The Secret Is Actually Pretty Simple
According to Obsidian CEO Feargus Urquhart, the studio’s productivity comes from identifying what they’re good at, understanding what they can accomplish with the time they have, and focusing on the content players actually experience. It’s not rocket science. It’s just good project management combined with talented developers who aren’t wasting time fixing AI hallucinations.
The studio has also benefited from Microsoft’s acquisition in 2018, which gave them the financial stability to pursue multiple projects simultaneously. They’ve been able to bring in external development teams like Eidos Montreal to collaborate on projects like Grounded 2, allowing them to scale without overextending their core staff.
Meanwhile, the Rest of the Industry Is Struggling
The contrast between Obsidian’s approach and the rest of the gaming industry couldn’t be starker. Electronic Arts reportedly mandated that employees use AI tools, which has backfired spectacularly. According to reports from October 2025, EA developers are spending significant time fixing the “hallucinations” and errors that generative AI introduces into their work.
Employees have been mocking the AI mandate in internal Slack channels, and many suspect the push for AI adoption is being used as justification for future layoffs. When your workforce is openly ridiculing corporate policy, that’s usually a sign things aren’t going well.
Square Enix Wants AI Doing 70% of QA
Square Enix announced in November 2025 that it wants generative AI to handle 70% of quality assurance and debugging work by the end of 2027. The publisher has formed a joint research team with the University of Tokyo to develop automation technology for game development processes.
The goal is to improve efficiency and establish a competitive advantage in game development. What Square Enix doesn’t mention is how they plan to achieve 70% automation without laying off the majority of their QA workforce. While automation tools already exist in game development, seeking to replace most human QA labor in two years using generative AI is an extremely ambitious and potentially reckless goal.
Activision Can’t Stop Stepping on AI Rakes
Call of Duty has become the poster child for AI implementation gone wrong. Call of Duty: Black Ops 6 faced backlash for AI-generated loading screens and banners, including the infamous six-fingered zombie Santa bundle. Valve even forced Activision to add an “AI generated content disclosure” to the Steam page after changing its storefront rules.
The latest controversy hit Call of Duty: Black Ops 7 in November 2025, when players identified multiple Calling Cards that appeared to be AI-generated “slop” featuring blurry textures and nonsensical elements. Some players successfully secured refunds on Steam, citing the undisclosed AI assets as their reason. Activision’s vague response about using “a variety of digital tools” did nothing to calm the backlash.
Why Obsidian’s Stance Matters
Obsidian’s rejection of generative AI is particularly significant because they’re owned by Microsoft, a company whose leadership is increasingly obsessed with AI integration across all its products. Microsoft CEO Satya Nadella has made AI investment a core part of the company’s strategy, often to the detriment of products consumers actually like.
For an Xbox Game Studios team to publicly state they’re not using AI tools at all represents a rare moment of resistance to corporate mandates. It suggests that at least some parts of Microsoft’s gaming division understand that forcing AI into creative processes doesn’t improve efficiency or quality.
The Numbers Don’t Lie
Here’s the thing that should make every publisher pay attention: Obsidian shipped three games in 2025 without using generative AI. EA mandated AI use and developers are spending their time fixing AI errors instead of making games. Square Enix is betting on replacing most of its QA workforce with AI by 2027. Activision keeps releasing AI-generated assets that players immediately identify and mock.
Which approach is actually producing better results? The studio that rejected AI entirely is shipping multiple well-received games per year. The studios forcing AI adoption are dealing with employee frustration, consumer backlash, and products that feel cheaper and less polished. This shouldn’t be a difficult calculation.
FAQs
Does Obsidian Entertainment use generative AI in game development?
No. In a November 2025 interview, Obsidian developers confirmed they are not using generative AI for writing, art, or any other aspect of game development. Director Josh Sawyer stated “It’s not something we’ve used” and Leonard Boyarsky added “We haven’t been using it at all.”
What games did Obsidian release in 2025?
Obsidian Entertainment released three games in 2025: Avowed (a fantasy RPG), The Outer Worlds 2 (a sci-fi RPG), and Grounded 2 (a survival game launched in early access). All three are original IPs owned by Obsidian.
How many employees does Obsidian Entertainment have?
Obsidian Entertainment has approximately 285 employees as of 2025. Despite this relatively modest size, they managed to ship three major games in one year.
What did Leonard Boyarsky say about AI?
Leonard Boyarsky said he was tempted to smack his 2019 self “upside the head” for speculating about AI-powered writing in games. He now believes such concepts would become “very unwieldy” in practice.
Is Obsidian owned by Microsoft?
Yes. Microsoft acquired Obsidian Entertainment in November 2018, making it part of Xbox Game Studios. Despite Microsoft’s corporate focus on AI integration, Obsidian has rejected using generative AI in development.
What problems are other studios having with AI?
EA developers report wasting time fixing AI hallucinations and errors. Activision has faced multiple controversies over AI-generated Call of Duty assets. Square Enix plans to replace 70% of QA work with AI by 2027, raising concerns about layoffs.
Will Obsidian make Fallout: New Vegas 2?
Probably not anytime soon. Obsidian leadership has stated that after years of working on other companies’ IP, they’re enjoying creating and expanding their own original franchises like The Outer Worlds, Avowed, and Grounded.
Conclusion
Obsidian Entertainment’s rejection of generative AI isn’t just a principled stance – it’s backed by results. While publishers like EA, Square Enix, and Activision force AI tools into development pipelines and deal with the predictable fallout, Obsidian quietly shipped three well-received games in one year using the old-fashioned method of talented humans doing creative work. The industry would be wise to pay attention. The studio that said no to AI is more productive, more creative, and generating better consumer goodwill than the ones desperately chasing algorithmic shortcuts. Sometimes the best innovation is recognizing what already works and not breaking it with unnecessary technology.