- Obsidian Entertainment is reportedly not at risk of closure amid ongoing restructuring at Xbox, according to Bloomberg's Jason Schreier.
- Despite earlier reports suggesting that Obsidian might be affected by upcoming Xbox cuts, Schreier confirmed that the studio is safe.
- Jason Schreier stated that the report claiming Obsidian was in negotiations to avoid closure is incorrect.
- The latest rumors had included Obsidian among studios at risk, but it appears that Xbox plans to retain the studio.
- Reports indicated that Obsidian Entertainment was among studios in negotiations with Microsoft to avoid closure as part of Xbox's cost-cutting initiative.
- Obsidian has not announced any new projects recently, which has raised concerns about its future amid the restructuring.
Obsidian Entertainment is reportedly safe from closure, as confirmed by Bloomberg's Jason Schreier. Despite earlier reports suggesting the studio was at risk amid Xbox's restructuring, Schreier stated, "Obsidian is not in negotiations to avoid shutting down." This reassurance comes as Xbox plans to make significant cuts across various studios.12356
The restructuring rumors initially included studios like Compulsion Games, Ninja Theory, and Double Fine, raising concerns about the future of several teams. However, Schreier's sources indicate that Obsidian will remain operational, with ongoing discussions about the studio's future.
Despite the uncertainty surrounding layoffs, it appears that Obsidian is not among those facing imminent closure. Schreier noted, "Plenty of details are still up in the air surrounding the layoffs (picture will be clear on Monday), but Xbox is keeping Obsidian." This news is particularly significant given that Obsidian has not announced any new projects since the release of The Outer Worlds 2 and Avowed in 2025, both of which received mixed sales performance.
As Xbox's new leadership under Asha Sharma seeks to refocus investments on major franchises like Halo and Fallout, the future of many studios remains uncertain. However, for now, Obsidian Entertainment appears to be safe from the impending cuts.
“Recent reports suggested Obsidian Entertainment was at risk of closure due to Xbox's restructuring. However, Jason Schreier confirmed that the studio is not in negotiations to avoid shutting down.”
Windows Central
VGChartz
VICE
