Todd Howard has dismissed the persistent fan narrative of a rivalry between Bethesda Game Studios and Obsidian Entertainment, calling it mere “fan chatter.” The comments come as Obsidian starts development on a new Fallout game, according to the original report.
Howard’s remarks arrive at a time when both studios operate under the same corporate umbrella, yet a segment of the player base still frames their relationship as competitive. Obsidian, best known for 2010’s critically acclaimed Fallout: New Vegas, will now get another crack at the franchise it helped define.
From New Vegas to Now: A Brief History
The roots of the perceived rivalry trace back to New Vegas. Released shortly after Bethesda’s Fallout 3, it was widely praised for its writing and role-playing depth, leading some fans to brand it the “true” successor to the original Fallout games. In the years that followed, any new Fallout entry from Bethesda inevitably drew comparisons to Obsidian’s work, fueling a narrative of competition. Unlike some smaller studios that openly share their game development process, Bethesda’s approach remained largely closed, which only added to the mystique around the two studios’ dynamic.
Howard’s dismissal of the rivalry suggests that, internally, the relationship is far more collegial than fans assume. Both teams have moved on from the era that birthed the comparison, and any lingering tension exists mostly in online forums.
Under the Same Microsoft Roof
Since Microsoft acquired ZeniMax Media in 2021, Bethesda and Obsidian have been sister studios within Xbox Game Studios. The corporate structure makes a genuine rivalry unlikely; resources and talent now flow between projects, and the leadership of both studios reports up the same chain. Meanwhile, Bethesda continues to leverage the Fallout IP through merchandise, including detailed action figures that keep the brand in the spotlight between game releases.
The new Fallout game from Obsidian is still in early development, and details are scarce. However, the very existence of the project signals Microsoft’s willingness to let multiple teams interpret key franchises—a strategy that paid off with New Vegas over a decade ago. If anything, Howard’s comments read as a quiet endorsement of that approach.
GamerHeadlines Takeaway
Fan rivalry between Bethesda and Obsidian has always been more narrative than reality. With both studios now under Microsoft and a new Fallout game in the works at Obsidian, the focus should shift from imaginary feuds to the potential for a fresh take on the wasteland. Howard’s casual dismissal might just be the final word on a debate that never really needed one.
