Obsidian Entertainment Whistleblower Exposes Toxic Corporate Culture and Gaming’s AAA Decline Due To "The Message"...
A whistleblower from Obsidian Entertainment has come forward with some seriously WILD information about the studio's internal culture under Microsoft's ownership, and more specifically, how Matt Hansen grew to power over there.
The following insights they've given to me have painted quite the 'grim' picture of a once-thriving creative environment that's unfortunately devolved into a corporate-driven leftist echo chamber where agendas and ideologies now far outweigh any actual passion for game development. This former employee, who we'll call "Doe" for anonymity, describes a workplace completely overrun by external influences, misguided priorities, and a toxic atmosphere that ultimately drove them out.
The center of this catastrophe of a workplace? None other than Matt Hansen. Some of the stuff I was told about him is going to blow your mind...
After my initial video expose discussing some of the concerns found in Hansen's BlueSky tweet history, this whistleblower decided to reach out to me via email. They told me they were a big fan of my video exposes about FireWalk Studios and BioWare - and from that, they felt confident that I was the perfect person to divulge this info to in order to get it out there for everyone. Doing this is the first step in fixing the problems that are plaguing the video game industry. We set up a video call from that and spoke for nearly 2 and a half hours. In addition, I've verified their previous employment history, and am extremely confident that what was told to me is 100% the real deal.
It's not easy to come forward and do this from the perspective as Doe - a now whistleblower - Doe informed me after putting all this information together what exactly they're going to be dealing with after this gets published:
"I know how spiteful of a person Matt unfortunately is and I know he and probably others will try to witch hunt me just to try and make my life hell because they aren't getting their way."
The DEI Era and Corporate Overreach
The shift in workplace dynamics began after Microsoft acquired Obsidian in November 2018 and made them a part of Xbox Studios. They implemented some... very strange corporate policies. The first tip-off to Doe that things weren't 'normal' anymore was with the introduction of (optional-but-in-reality-mandatory) pronouns in email signatures, meetings, and other communications. While initially framed as optional, it quickly became clear that dissent was not welcome. Doe decided they didn't want to add pronouns to their own communications, but 'went along with' the idea that others were free to do so. A 'live and let live' mantra that initially at least - seemed so harmless at the time. Doe knew deep down that not including pronouns wasn't a good look from the jump, but declined them anyways because it was just so... strange to list them.
Of course, this 'harmless' pronoun situation turned serious shortly after the initial email came through. Doe recalled an incident of someone at Obsidian complaining to HR a couple weeks after that Microsoft pronoun initiative began. After the misgendering incident, Matt Hansen sent a company-wide email declaring a zero tolerance for intentional or malicious misgendering. The email’s tone was described to me as passive-aggressive yet, threatening, a fair warning that employees who couldn’t align with these policies would face termination.
So now we have this 'harmless' idea of instituting pronouns turning out to be... quite harmful in the grand scheme. Who'd a thought!? In all seriousness - Doe described what I would agree as using the pronouns as a way of controlling others, and using them as a way to shift the power balance/structure of the entire organization.
For Doe, this was the turning point.
Doe observed that the Obsidian's culture seemed increasingly unwelcoming to anyone who didn’t fit a 'specific' mold, with demographics at the company becoming noticeably homogeneous in one specific direction. Doe also observed that Matt Hansen extremely difficult to work with, citing an unwillingness to accept constructive criticism and a consistent tendency to make assumptions about lower level employees’ commitment. These experiences, combined with a broader sense that the company’s priorities had shifted away from fostering a collaborative and creative environment, left him questioning their place within the studio.
Out of, at the time - well over 200 employees, there was only a handful of straight, white males. As they put it: "I probably could count them all... on one hand?". The studio itself was extremely gay, and LGBTQ friendly.
Not that there's anything wrong with that...
...But it is a bit curious how the ideology begins to morph and push to adhere to a certain 'expected' viewpoint, and if you do not ideologically align, you are instantly an outcast, creating an even deeper echo chamber of like-minded thought.
Doe began quietly updating their resume, realizing the workplace they initially signed up for had now instead become intensely hostile to anyone who didn’t conform. “I didn’t touch that with a 20-foot pole” Doe told me, knowing deep down that any pushback would put them on the radar as the next person out the door. Despite staying at Obsidian for another few years, the toxicity only grew during that time, and he eventually parted with the company.
I'd love to go into more details here, but again, for full anonymity, I need top leave it surface level. Trust me when I tell you, it's directly in line with EXACTLY what keeps happening to good employees at these game companies.
Spiritual Warfare in the Workplace
To Doe, the struggles within Obsidian represented far more than workplace conflicts—they were a battleground in a larger spiritual war between good and evil. Doe began the conversation recalling a pivotal moment two years after the COVID pandemic began, when the company held a meeting to discuss returning to the office. The reaction from employees was nothing short of COMPLETELY unhinged. Employees of all levels melted down in front of all the higher ups on a Microsoft Teams call.
They made demands while berating the CEO Feargus Urquhart as if they controlled the company instead of him. Leadership was so taken aback by the collective massive outrage that they quickly walked back their plans of framing the return-to-office initiative as an attempt to improve efficiency and product quality... and allowed them to work from home for longer.
Amid the chaos, Matt Hansen - the Art Director for over 9 years now at Obsidian, emerged as a vocal advocate for continued remote work, citing various mental health concerns for employees. At the time, many employees were still clinging to outdated CDC guidance, convinced that returning to the office would be life-threatening. Doe was struck by the quasi-religious fervor of these 'particular' individuals, those who apparently embodied a 'cult-like' adherence to fear—wearing multiple masks and living in bubbles if they could. Specifically stating these were the type of people that would wear 5 or 6 masks at once if they could. The same types that would advocate for traveling around in society in a literal bubble for enhanced protection...
Doe believes this intersection of extreme COVID caution and their LGBTQ/Marxist alignments over at Obsidian has now morphed into a sort of new-age religion, driven by blind obedience to an ideological dogma. Doe felt that these people needed a real religion to embrace, because without it, they were lost souls clinging to identity politics as their god.
Passionless Studios and the Rise of Corporate Influence
Doe’s experience at Obsidian highlights a much larger issue plaguing the entire (especially AAA) gaming industry: the decline of any authentic and true passion among developers. Doe feels that many employees at Obsidian—and other AAA studios—aren't there to create great games for gamers, but instead, to push agendas from the top down to further promote their ideology. Gaming’s mainstream popularity and massive cultural reach have attracted outside influences like Bridge, BlackRock/Vanguard, and Sweet Baby Inc., whose primary focus is financial gain rather than great game experiences and overall game quality.
This corporate chokehold has now stifled creativity and stripped games of value for players. Leaders at Obsidian like Matt Hansen continue to be empowered to go on unhinged BlueSky racist rants, attacking gamers, and being protected by echo chambers of positive feedback.
Hansen has grown more emboldened over the years to attack the very gamers that were there to support his product, while ignoring the core audience concerns.
The positive feedback loop Hansen has been embroiled in is beginning to collapse, we are seeing it live, first hand - RIGHT NOW - and studios like Obsidian are facing a rude awakening as reality sets in. Players are rejecting subpar products, and the disconnect between developers and their audience is becoming impossible to ignore. You gotta imagine Microsoft HAS to step in and change gears here - if they care anything about the future success of their products in a customer-driven ecosystem. But according to Doe, Microsoft doesn't care, and that's precisely how people like Hansen have not only remained in power at their respective company, but continued to succeed in the corporate structure.
It Wasn't ALL Bad Though...
Doe shared with me that amidst all the awfulness from people like Matt Hansen, there were and still are some really wonderful and talented people employed at Obsidian that are really kind and collaborative and genuinely helpful people. Specifically, Doe stated:
"I learned a lot from several people there and have a lot of respect for them and their craft. I think the distinction is really important to make because many of these people are good at heart and well intentioned and just want to make cool stuff. Many of those who've fallen unknowingly to this indoctrination can't really see it for what it is, and the road to hell is paved with good intentions."
Down Goes the AAA Gaming Industry
The revelations from Doe serve as a warning for the entire AAA gaming industry. The influx of corporate money and ideological agendas threatens to erode the very heart of what makes gaming special (at least - originally): passionate developers creating immersive, high-quality experiences for players.
Doe continued:
My goal with helping bring all of this to light is I want to help spread awareness of what is actually the problem in our industry and where it's coming from and why. I do not want to see my friends and peers fail, I do not want to see Obsidian and Microsoft fail. I would love to see healthy competition again in our industry where developers are unshackled by bad management and leadership, shareholders and investor's personal interests. Making a good game comes first, if you can convey a message through a seamless and fun experience then even better. Let the creative endeavor happen naturally, it can't be forced. I'm a firm believer in the free market of ideas and meritocracy and whatever is the best idea for the game and what the playerbase wants that's what should be implemented.
...and Doe continues:
While I want to see success for everyone, I think it's important that it is earned. Honesty and accountability is paramount. For those that don't earn it, I hope you learn from your earned failures. Success is built on learning from our past failures. Success can be a blessing, but remember to also stay humble and check your egos at the door when you clock in. We're here because our players support us to do so. We're here to make a fun experience and provide escapism for them, maybe even inspire some of our fellow gamers to take up the mantle like we have from those who inspired us to join the creative endeavors of game development. We're here for the journey and the process, not the destination. Developers win, when their players win
This Doe is, deep down, a true passionate gamer - but if more studios continue to fall into the trap of prioritizing external influences over their craft, the more they will alienate the very audience they depend on.
For Obsidian Entertainment, and the industry at large, the time for self-reflection is now. If studios don’t address these growing issues, they'll find themselves losing not only whatever talent they still have remaining on board, but also the trust of the players who keep them alive.
~Smash
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