Microsoft-Owned Studio Not at Risk of Closure
Contrary to earlier reports, Obsidian Entertainment, the developer behind The Outer Worlds and Fallout: New Vegas, is reportedly not at risk of closure amid Microsoft’s ‘reset’ of the Xbox business.
Bloomberg reporter Jason Schreier has clarified that the Game Business report about Obsidian is incorrect, and the studio is not in negotiations to avoid shutting down.
According to Schreier, Xbox is keeping Obsidian, citing people familiar with the situation. The statement comes as a relief to fans of the studio’s games, which have been a staple of the gaming industry for years.
Obsidian has been a major player in the gaming industry, developing games such as The Outer Worlds, Fallout: New Vegas, and Pentiment. The studio has been without a new announced project since both Avowed and The Outer Worlds 2 failed to hit commercial targets.
However, the studio’s latest game, Grounded 2, is set to launch in 2025 and has been well-received by critics and fans alike. Despite the studio’s recent struggles, it appears that Obsidian is safe from closure, at least for now.
The news comes as part of a larger effort by Microsoft to re-evaluate its investment in externally developed games. The company has stated that it will be focusing on its highest priorities and taking a fresh look at where it invests.
Microsoft has not ruled out turning the Xbox brand into a wholly-owned subsidiary, which could result in Xbox being operated as a joint venture with other partners or potentially being sold. However, it appears that Obsidian is not at risk of being affected by this move.
The studio’s VP of operations, Marcus Morgan, had previously expressed hope that the studio would be given the chance to make another Fallout game, citing the success of Fallout: New Vegas as an inspiration.
Microsoft’s decision to keep Obsidian comes as a relief to fans of the studio’s games, who have been eagerly awaiting news about the studio’s future.
The news also comes as part of a larger effort by Microsoft to re-evaluate its investment in externally developed games. The company has stated that it will be focusing on its highest priorities and taking a fresh look at where it invests.
While the future of Obsidian is still uncertain, it appears that the studio is safe from closure for now. However, the gaming industry is always changing, and it remains to be seen what the future holds for the studio.
Background on Obsidian’s Recent Struggles
Obsidian has been without a new announced project since both Avowed and The Outer Worlds 2 failed to hit commercial targets. The studio has been working on Grounded 2, which is set to launch in 2025 and has been well-received by critics and fans alike.
Despite the studio’s recent struggles, it appears that Obsidian is safe from closure, at least for now. The news comes as part of a larger effort by Microsoft to re-evaluate its investment in externally developed games.
Microsoft has not ruled out turning the Xbox brand into a wholly-owned subsidiary, which could result in Xbox being operated as a joint venture with other partners or potentially being sold. However, it appears that Obsidian is not at risk of being affected by this move.
