Bloomberg’s Jason Schreier Says Xbox is Not Shutting Down Obsidian Despite Report

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William D’Angelo
, posted 6 hours ago / 757 Views

Bloomberg’s Jason Schreier in a post on social media said The Outer Worlds, Avowed, and Grounded developer Obsidian Entertainment is safe from being shutdown and Xbox is keeping the studio.

“Despite a report this morning, I can confirm that Obsidian is *not* in negotiations to avoid shutting down,” said Schreier. “Plenty of details are still up in the air surrounding the layoffs (picture will be clear on Monday) but Xbox is keeping Obsidian, according to people familiar with the situation.”

This follows a report from The Game Business that named the studio alongside other previously mentioned studios at risk of closure that quickly spread over social media.

“Studios such as Compulsion, Ninja Theory, Double Fine, Obsidian, Undead Labs and others are deep in negotiation with Microsoft to avoid closure,” read the original report.

Obsidian head Fergus Urquhart earlier this year told Bloomberg that Grounded 2 was a “big hit,” but The Outer Worlds 2 and Avowed failed to meet expectations. 

VideoGamesChronicle journalist Jordan Middler on social media after the original report broke revealed he had heard multiple times Obsidian was in the early stages of developing a new Fallout game.

“Been told multiple times recently they were early on a Fallout project, which is obviously dream stuff for fans,” said Middler.

One of the biggest hits from Obsidian is Fallout: New Vegas, which is also one of the IPs Xbox leadership wants to get new entries out quicker. The last mainline entry in the series was 2015’s Fallout 4, while the last entry was the live service game Fallout 76 in 2018.

A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.

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