Update: Citing “people familiar with the situation,” Bloomberg’s Jason Schreier claimed that Xbox plans to retain Obsidian. “Despite a report this morning, I can confirm that Obsidian is not in negotiations to avoid shutting down. Plenty of details are still up in the air surrounding the layoffs (picture will be clear on Monday)…”
Original Story:
After reports that Xbox is planning to close Arkane Studios, Undead Labs, Compulsion Games, Double Fine and Ninja Theory, another name has emerged as potentially at risk: Obsidian Entertainment. This is according to The Game Business, which cited The Outer Worlds and Avowed studio as being “deep in negotiation” with Xbox to avoid being shuttered.
The reasoning for this, per Christoper Dring, matches up with previous reports about Xbox investing in its “big franchises,” including The Elder Scrolls, Fallout and Halo. Former Apogee and 3D Realms co-founder George Broussard claimed that anyone not working on two of Bethesda’s biggest tentpole franchises is effectively out.
As for why Obsidian is at risk, it may very well be due to the underwhelming performance of The Outer Worlds 2 and Avowed – both cited in a previous report as not meeting Xbox’s sales expectations. The studio is working on story DLC for the former, which has yet to receive a release date, and an alleged sequel for the latter.
Assuming it comes to some kind of agreement with Xbox, you have to wonder if Avowed 2 survives. At the very least, Grounded 2, currently in early access, may survive.
We’ll allegedly know the fate of these studios and layoffs on July 6th, so stay tuned for more updates and details.
