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The Obsidian class light cruiser was built to provide a more combat orientated alternative to the current Amazon class light cruisers in operation. The combat shortcomings of the Amazon type became apparent fairly early on in a training exercise pitting the Amazon class TAS Shikoku against a Danarian vessel of similar size. The lack of the heavy 6" armament became apparent almost immediately, the Danarian ship easily outclassing the Shikoku in combat operations.

It was decided that a combat orientated alternative to the Amazon class was to be designed. The result was the the Obsidian class. Faster, and with a more compact and sleek profile, she was designed with the combat in mind. As such, she carries three of the twin 6" plasma stream cannon turrets, compared to the Amazon's 1 turret. She carries 5 of the 5.5" single plasma stream cannon turrets also found on the Amazon class, but one more numerous. The point defense/AA armament has been completely restructured, with the dorsal array consisting of 7 vertically stacked 20mm twin laser cannons, and the ventral array of 4 40mm single laser cannons.

These ships currently number around 100 in operation, with several shipyards churning more out. The Amazon class is losing its favour among the fleet commanders because of its inferior armament, and these ships are becoming far more popular.

What's the large rudder-like part hanging down from the front of the ship?

You mean the first one or the second one?

the first one, on most Ariel vessels, is a common design feature that often mounts sensor equipment. Its part of the basic hull shape.

The second one is there purely to mount the cannon. They are a twin of large fins, with the 5.5" gun mounted in between them.

I meant the first one.
Is there a need for it to stick out from the ship like that?

Probably similar in function to a radar tower, I'm guessing?

And can we assume that this dispenses with the embarked craft in favor of speed, armament, and armor?

You guess somewhat correctly Mikey. the sensor systems are mounted as far away from the centralized reactor because of interference from the power core.

Aye, this thing is faster, better armed, and with better armour, but can only mount 1-2 fighters/shuttles. There is an issue that this ship isn't quite as stable as the Amazon, because the drive systems are fitted aft of the main systems , but it is faster still.