Overview
- Multiple outlets reported on July 2 that The Game Business said Obsidian Entertainment was negotiating with Microsoft to avoid closure, adding the studio to a list of Xbox teams said to be at risk.
- Hours later Bloomberg reporter Jason Schreier wrote that Obsidian is not in negotiations and that people familiar with the situation say Xbox will keep the studio.
- Insider reporting then suggested Xbox leadership held rapid, 24‑hour discussions that may have considered closure before reversing course, which helps explain why accounts differ.
- The conflicting coverage takes place inside a broader ‘reset’ ordered by Xbox CEO Asha Sharma that reporters say will reallocate spending to tentpole franchises and trigger layoffs and possible studio sales starting around July 6.
- If the reports are accurate, the decisions will directly affect studio staff who face sudden uncertainty over jobs and projects and could shift Xbox’s long‑term strategy toward fewer, bigger franchises.