Obsidian Entertainment Reportedly NOT at Risk of Closure

Key Points:

• Bloomberg reporter Jason Schreier clarified that Obsidian is not currently negotiating to avoid closure and that Xbox intends to keep the studio, despite earlier reports suggesting otherwise.
• Obsidian, known for Fallout: New Vegas and The Outer Worlds, is currently without a new announced project after recent titles underperformed commercially, but Xbox leadership is reportedly reassessing investments across its gaming studios.
• Microsoft’s new Xbox head Asha Sharma is accelerating development on major franchises like The Elder Scrolls, Fallout, and Halo, while the company is shifting focus on where to invest rather than reducing overall gaming investment.
• Recent Microsoft layoffs and studio closures have caused unrest among Xbox employees, with unionized workers calling for immediate bargaining and criticizing executive decisions amid ongoing negotiations with the Communications Workers of America (CWA).
• Microsoft is reconsidering its Xbox business strategy, including the possibility of turning Xbox into a wholly-owned subsidiary or joint venture, as part of a broader “reset” following significant financial losses and a push for higher accountability.