...and it's not pretty.
An anonymous whistleblower for Obsidian Entertainment has leaked to me directly an internal email sent to the entire company, signed by none other than Feargus Urquhart, the CEO of the studio. The email provides a sad glimpse directly inside into the current state of Obsidian Entertainment.
This insider has also revealed something both surprising ...and humbling: a LOT of employees at Obsidian have been watching my videos in particular, covering this unfolding situation. Over the past few weeks—since the Matt Hansen controversy erupted—I’ve been inundated with messages from folks connected to the studio in some way, shape or form, all with eerily similar sentiments. Almost like... I dunno... a pattern of poor and misguided leadership? You be the judge.
A picture has been slowly brought into focus here, and ...it’s not a pretty one. The whistleblower stated in their message, echoing what many other folks have said to me in the past:
"While I disagree with everything Matt (and others) are doing at the studio - I do worry about "feeding" the outrage machine. However, I also worry that nothing will ever change for the better as long as people are ignorant of what is going on."
Obsidian, the once-beloved creator of classics like Fallout: New Vegas and The Outer Worlds, finds themselves at a serious crossroad. The internal climate is one of division, frustration, and stagnation. The whistleblower continues:
"The problem at Obsidian is cultural - and culture flows from the top."
According to the leaker and multiple other employees who’ve reached out to me, a significant portion of the staff agrees that Matt Hansen is a roadblock, stifling true creative freedoms in favor of pushing extreme ideologies.
"Matt has no fear of being fired because long before MS bought OEI, this was the culture. MS only further reinforces that particular world and cultural view."
"There were some there that pushed back against it, but most just left."
While the email from Feargus Urquhart doesn’t name names, it inadvertently highlights the cracks forming in the studio’s foundation...
Feargus’s Email: A Small Band-Aid on a HUGE Wound
Many of you have probably seen the controversy online about Avowed over the last four or five days. I am not going to speak directly to what is happening, because the way we are going to deal with this (unless things change) is to let it blow over. I have always dealt with things like this by not giving them more airtime.
Now to talk about how you all engage online. You have probably all noticed that our language at Obsidian is to walk a tightrope when it comes to how we ask you to think about your online presence.
You have all heard me say that you are your own people and, of course, have every right to say what you want to say wherever you want to say it—something I staunchly believe in personally, whether I like what you say or not. That freedom does come with challenges and responsibilities. Particularly, when you talk about things that are associated with our games, or games in general. What you say can...
In the email, Urquhart addresses a recent controversy surrounding Avowed, the studio’s upcoming fantasy RPG. “The way we are going to deal with this (unless things change) is to let it blow over” he writes, opting to sidestep any direct engagement and difficult conversations with the growing backlash.
His passive approach feels emblematic of a larger issue at Obsidian: a leadership team that’s unwilling—or unable—to tackle the root causes of employee discontent.
Urquhart acknowledges employees’ online engagement, reminding them to “walk a tightrope” when it comes to having an online presence. He emphasizes that they have the freedom to say what they want ...but warns of the responsibilities that come with it, particularly when discussing Obsidian’s games. While this might seem like boilerplate corporate language on the surface, it reveals a far deeper issue. Employees feel increasingly constrained in their ability to speak freely, even within the walls of their own studio, as Matt Hansen’s influence looms large. From an overwhelming amount of actual people connected to Matt in some form or another, they all are in unison with their message to me: NO ONE wants him there, as they fear he singlehandedly is dragging down the company from within.
An Ideological Stranglehold
The whistleblower who leaked this email—and many others who’ve contacted me since the controversy began—paint the picture of a studio caught in the grip of extreme ideological agendas.
While I've discussed plenty of times on my channel how woke cultures in game development ultimately consume the very company they aim to raise up, Matt Hansen, a senior leader at Obsidian, is at the center of it all with Obsidian. According to people close to him, his leadership style has become synonymous with censorship and the suppression of creative voices that don’t align with his worldview.
“He’s blocking true creative freedoms for the sake of pushing his extreme ideologies”
...I've been told.
What’s striking is how widespread this sentiment appears to be. From my view, based on the sheer volume of messages I’ve received from too many people to count at this point, it feels almost unanimous. And yet, according to my source, nothing inside Obsidian seems to be changing.
AT ALL.
This direction is particularly concerning given the stakes: Avowed is shaping up to be one of Obsidian’s most ambitious projects, but now? It's been overshadowed by growing internal strife and external skepticism.
“Cracks Are Starting to Show”
Urquhart’s email, while professional and measured, underscores the sense that he’s lost control of the studio. His statement that “freedom does come with challenges and responsibilities” reads as almost a veiled warning to employees who might try and speak out about their frustrations.
I've had other whistleblowers expose some serious problems at the studio, only to message me later asking to not discuss the story, due to fear of backlash on them in particular. This is NOT a productive work environment. No employee should fear speaking out against woke ideologies and agendas... Yet at Obsidian, here we are.
The leaks continue, and many of those connected to Obsidian have completely lost faith in leadership. Ever since Microsoft took over, and Feargus got a good payout, it almost feels like the passion that once drove his heart... is all but gone at this point.
The whistleblower described a workplace where morale is at an all-time low, creativity is stifled, and fear of any retaliation silences the currently growing dissent. Ideology has taken precedence over storytelling, and Avowed—a game once brimming with potential—now risks becoming a casualty of this internal chaos. It’s gotten so bad that the situation goes well beyond just the perception of Avowed's problems that’s in question anymore... It’s Obsidian’s ability to survive as a studio if these issues go unresolved.
A Studio on the Brink
From what I’ve been told, there’s a growing sense that Obsidian is teetering on the edge. Don't be surprised if this is the beginning of the end.
Feargus Urquhart’s leadership is being questioned internally, and Matt Hansen’s unchecked influence and protection from Microsoft proper is causing a gigantic rift within the company. If major changes don’t happen soon, the very foundation of the studio could collapse under the weight of its own internal strife.
The cracks are starting to show. The choice now is whether Obsidian will actually try to patch them up and refocus on what made them great in the first place—creative freedom and bold storytelling—or... based on this email, more likely allow themselves to crumble, destroying quality developers and employees lives while it spirals the drain. Either way, the next few months will be pivotal not just for Avowed, but for the future of one of gaming’s most iconic studios.
There are so many GREAT, hard working, and talented employees at Obsidian. The current situation they're facing is a damn shame.
It really is.
~Smash
