Overview
- On Thursday multiple outlets published two opposing accounts: The Game Business said Obsidian was negotiating with Microsoft to avoid closure while Bloomberg reporter Jason Schreier said Obsidian will be kept by Xbox.
- An industry insider has since said Xbox discussed Obsidian's fate briefly and then reversed course within 24 hours, which helps explain how both reports could reflect different moments in a fast-moving process.
- Reports say Microsoft CEO Asha Sharma has launched a 100-day 'reset' to restore profitability and is refocusing investment on a few tentpole franchises, a shift that prompted the review of several Xbox Game Studios teams.
- Multiple outlets warn significant job cuts and studio changes are imminent with layoffs reported to begin on July 6 and final decisions expected to be announced when Microsoft lays out the reset.
- The debate over Obsidian underscores wider financial drivers cited by reporters, including high content subsidies, weak Call of Duty sales, and underperforming recent Obsidian titles, which together are shaping which teams Xbox will keep or cut.