Is yet another Microsoft studio, Obsidian, negotiating with Xbox to avoid closure? Conflicting reports emerge
Key Points:
- A report from The Game Business claims Obsidian Entertainment is negotiating with Microsoft to avoid closure amid the company's business reassessment, alongside other studios like Arkane, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs.
- The report suggests that poor performance of Call of Duty has negatively impacted Xbox's overall business, with games like Avowed and The Outer Worlds 2 underperforming relative to expectations.
- Some insiders believe that shutting down studios such as Undead Labs or Ninja Theory is futile, as reallocating budgets to major franchises like Halo will not guarantee success.
- Bloomberg journalist Jason Schreier contradicted the closure rumors, confirming that Obsidian is not in negotiations to avoid shutdown and that Xbox plans to keep the studio.
- The conflicting reports may reflect internal uncertainty at Microsoft, with decisions about the company's "big reset" still evolving and subject to change.