Overview
- On July 2 multiple outlets published conflicting accounts about Obsidian’s fate with The Game Business reporting the studio was negotiating to avoid closure and Bloomberg reporter Jason Schreier saying Obsidian will be kept.
- Several other Xbox-owned teams have been widely named as at risk, including Compulsion Games, Ninja Theory, Double Fine, Undead Labs and Arkane, with sources saying some studios are exploring sales, spin-offs or internal negotiations to survive.
- The reports tie to a publicly signaled 100-day reset under Xbox CEO Asha Sharma that aims to restore profitability by shifting investment to tentpole franchises such as Halo, Fallout and The Elder Scrolls.
- Insiders and outlets say decisions and layoff announcements were expected in the days after Microsoft’s June 30 fiscal year close, with multiple reports pointing to planned actions around July 6.
- The situation remains fluid and unsettled with no official comment from Microsoft or Obsidian, and employees reportedly being allowed to seek other roles while some teams weigh buyouts or independence.