Xbox may be looking to offload Obsidian Entertainment as part of a broader plan to reallocate spending, according to a report from The Game Business.
This potential move follows news of significant layoffs across various Xbox subsidiaries. The Game Business indicates that Obsidian, known for titles such as Avowed, Fallout: New Vegas, Grounded, and The Outer Worlds, is now reportedly on the chopping block alongside other studios like Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. The rationale behind these considerations appears to be a strategic shift by Microsoft to invest more heavily in its major franchises, necessitating a reduction in operational costs by divesting from certain studios.
Similar to other affected development teams, Obsidian is reportedly engaged in ongoing negotiations with Microsoft in an effort to prevent its closure or sale. The situation is described as developing.