A whistleblower that worked at the Microsoft-owned Obsidian Entertainment game studio has shone a light on toxic behavior from Avowed art director Matt Hansen.

When Hansen took a major victory lap to celebrate the fact that X-owner and world’s richest man Elon Musk had called out his fantasy RPG Avowed for its use of optional pronouns in a fantasy setting, he couldn’t have known that this whole scenario would snowball the way it has. Hansen now finds himself at the center of a major controversy spearheaded by Musk that has exposed alleged racist and illegal hiring practices at the company.

But, as the saying goes, it gets worse.

A whistleblower who previously worked for the developer came forward to YouTube personality SmashJT with stories of his experiences working for the company and for Hansen.

“The shift in workplace dynamics began after Microsoft acquired Obsidian in November 2018 and made them a part of Xbox Studios,” SmashJT said in his official write up on the two and a half hour conversation he had with the whistle blower, code-named Doe for the sake of anonymity. “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.”

It wasn’t long before an event he described as a “misgendering incident” swept through the company.

This led to Matt Hansen sending out a company wide email detailing a zero tolerance policy on “intentional or malicious misgendering.”

Matt Hansen on a panel with other Obsidian developers – YouTube, SmashJT

“The email’s tone was described to me as passive-aggressive yet, threatening,” SmashJT said. “A fair warning that employees who couldn’t align with these policies would face termination.”

JT went on to say that Doe described the use of pronouns within the company as a way of controlling others. They were used as a means of shifting the balance of power within Obsidian and Microsoft.

“Doe also observed that Matt Hansen was [sic] extremely difficult to work with, citing an unwillingness to accept constructive criticism and a consistent tendency to make assumptions about lower level employees’ commitment,” JT said. He also said around this time the number of straight white male employees diminished until they could be counted one one hand.

A screenshot from the trailer for Avowed – YouTube, IGN

That certainly falls in line with the potentially discriminatory hiring practices Obsidian is being accused of by Musk and others. Hansen made it clear that he hires based on race and that people who aren’t “crusty white dudes” are his priority.

Doe also detailed a story in which, a full two years after the Covid pandemic, Microsoft attempted to make Obsidian employees return to work in the office to increase productivity and quality.

“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,” SmashJT said.

A screenshot from the pre-order trailer for Avowed – YouTube, IGN

Apparently the ring leader of the pushback on ending remote work was Hansen himself.

“Amid the chaos, Matt Hansen — the Art Director for over nine years now at Obsidian, emerged as a vocal advocate for continued remote work,” JT said, noting that, according to Doe, Hansen cited various mental health concerns for employees as part of the reason why they couldn’t come into work.

Doe stated that the extreme Covid caution along with the massive ideology shift within the organization turned Obsidian into some kind of new-age religion. He noted that the remaining employees were “driven by blind obedience to an ideological dogma.”

“This corporate chokehold has now stifled creativity and stripped games of value for players,” JT said. “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.”

Despite this, Doe said that it wasn’t all bad and he still had hope for Obsidian’s future.

 

“I learned a lot from several people there and have a lot of respect for them and their craft,” Doe said. “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.”

With Musk’s involvement, it seems as though a reckoning might be coming for Obsidian. It’s as of now unclear whether these controversies will have any major impact on Avowed’s sales. However, with Musk’s connections at the highest levels of government, it’s certainly possible that any illegal hiring practices at Obsidian will be looked into once the Trump Administration takes control on January 20, 2025.

Chris Avellone, the co-founder of Obsidian, even urged any developers who were rejected by the studio to seek legal representation and bring an employment discrimination lawsuit against the company he helped start.

“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,” Does said the SmashJT. “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.”

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He said while success is nice, it’s not something that any developer or studio is entitled to.

“While I want to see success for everyone, I think it’s important that it is earned,” Doe said. “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.”

Do you tink Avowed will be a success? Has Obsidian engaged in illegal racist hiring practices under Matt Hansen? Does Microsoft care? Sound off and let us know your thoughts!