Obsidian Entertainment, the Xbox Game Studios developer behind titles like The Outer Worlds, Pentiment, and Avowed, is facing a class-action lawsuit. The case alleges systematic violations of California wage and hour laws affecting nonexempt employees.
The allegations
The lawsuit was initially filed in October last year, with an amended complaint submitted in January by plaintiff Victoria Turner. Turner’s name matches that of a QA lead who worked on Obsidian’s 2025 RPG, The Outer Worlds 2.
According to the filing, the studio engaged in a “systematic pattern” of violations under the California Labor Code and Industrial Welfare Commission (IWC) Wage Orders. Specific claims include:
- Failure to pay all wages, including minimum wage and overtime.
- Failing to provide lawful meal periods or compensation in lieu thereof.
- Not authorizing or permitting lawful rest breaks or providing compensation for missed breaks.
- Failure to reimburse necessary business-related costs.
- Providing inaccurate itemized wage statements.
- Failing to pay wages timely during employment and upon separation.
The case seeks monetary relief for Turner and all similarly situated employees in California. The proposed class covers anyone employed as a nonexempt worker by Obsidian between October 9, 2021, and the date of class certification. It also includes those who separated from employment between October 9, 2022, and the certification date.
Obsidian’s response
In early March, Obsidian issued a formal response to the First Amended Complaint (FAC). The studio denied “each and every allegation” made in the filing. Obsidian stated that neither Turner nor any putative class members suffered injury or damages due to any act or omission by the developer.
The defense argued that the plaintiff’s case fails to state facts sufficient to constitute valid claims. Additionally, Obsidian asserted that employees consented to and acquiesced in the alleged conduct. Essentially, the studio contends that workers voluntarily gave up lunch and rest breaks, rendering the claims invalid.
What this means for you
For gamers, this legal dispute is separate from Obsidian’s ongoing development work. The studio continues to operate under Xbox Game Studios while implementing structural changes aimed at shortening development cycles and reusing technology. These efforts follow reports of internal restructuring to address past development struggles.
The lawsuit remains active as it moves toward potential class certification. We will monitor developments and update this story if new information emerges regarding the outcome or impact on Obsidian’s operations.
Source: Windows Central
Over to you: Do you think workplace disputes like this impact your perception of a studio’s upcoming game releases?
