While mandates of generative AI continue to creep into facets of the gaming industry, Xbox Game Studios’ role-playing game (RPG) developer, Obsidian Entertainment, is not one of the teams that seemingly plans to embrace it.
Speaking in an interview with GameFile, Obsidian Entertainment’s Josh Sawyer, Kate Dollarhyde, and Leonard Boyarsky discussed the process of writing several major games across the studio’s history and how their experience has changed over time.
As part of the conversation, Boyarsky mentioned his comments from a 2019 podcast where he speculated about AI-powered writing. Boyarsky noted that he was now tempted to smack his prior self “upside the head” and that any such concept would quickly get “very unwieldy.”
When asked whether or not Obsidian Entertainment is using generative AI in its writing, Sawyer said that it’s “not something we’ve used,” with Boyarsky adding that “We haven’t been using it at all.”
It’s a telling statement, considering that Obsidian Entertainment is easily one of the most productive studios not just under the Xbox umbrella but across the entire gaming industry.
In 2025 alone, Obsidian Entertainment launched a fantasy RPG with Avowed, a survival experience with Grounded 2 (which admittedly launched in early access), and a sci-fi sequel, The Outer Worlds 2.
Launching three fairly big games in the same year for a studio that has 285 employees at last count is genuinely astounding, and the teams deserve huge props for their work.
Another team has even found time to bring a turn-based mode to its 2015 RPG Pillars of Eternity, and the mode is available in beta testing on PC right now.
Generative AI mandates are causing havoc at some publishers
Many other companies in the gaming industry are making plans to embrace generative AI. Battlefield 6 publisher Electronic Arts has reportedly required employees to embrace AI tools, which has, in turn, caused problems as the workers then have to fix the so-called “hallucinations” that the technology introduces.
Meanwhile, Dragon Quest and Final Fantasy publisher Square Enix recently announced that it is planning for 70% of quality assurance work to be handled by generative AI by the year 2027.
Krafton, the publisher behind Subnautica 2, PUBG, and inZOI, has also stated that it’s all-in on AI, with plans to fully adopt various AI systems by the second half of 2026. The company has since gone on to introduce a voluntary resignation program (read: soft layoffs) as this AI investment continues.
Activision (another publisher that is under Microsoft) has also faced backlash for the use of clearly AI-generated items like banners and loading screens in Call of Duty.
Obsidian’s stance is nice to see
It’s nice to see Obsidian Entertainment take this stance, especially considering the team is under Microsoft, a company whose top brass seems increasingly focused on investing in the latest AI trends to the detriment of Windows or anything consumers actually like.
If you haven’t checked out any of the team’s most recent games, be sure to check out my colleague Zachary Boddy’s review of Avowed, as well as my review of The Outer Worlds 2. Fittingly, we also collaborated to share our combined experiences with Grounded 2 in our early access impressions.
FAQ
What did Obsidian Entertainment say about generative AI?
The studio confirmed it is not using generative AI in its game development process.
Why is Obsidian rejecting generative AI?
Obsidian values human creativity, artistry, and storytelling — qualities it believes AI cannot replicate.
Which games are affected by this stance?
Upcoming titles like Avowed and future RPG projects will remain fully human‑crafted.
What platforms is The Outer Worlds 2 available on?
The Outer Worlds 2 is currently available on Xbox Series X|S, Windows PC (Battle.net, Steam, and Xbox on PC), and PlayStation 5. As an Xbox first-party game, it’s also included in Xbox Game Pass Ultimate and PC Game Pass.
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