{"id":2484996,"date":"2026-07-02T14:27:43","date_gmt":"2026-07-02T14:27:43","guid":{"rendered":"https:\/\/celebrity.land\/en\/?p=2484996"},"modified":"2026-07-02T14:27:43","modified_gmt":"2026-07-02T14:27:43","slug":"obsidian-entertainment-reportedly-also-at-risk-of-closure","status":"publish","type":"post","link":"https:\/\/celebrity.land\/en\/obsidian-entertainment-reportedly-also-at-risk-of-closure\/","title":{"rendered":"Obsidian Entertainment Reportedly Also at Risk of Closure"},"content":{"rendered":"<p><\/p>\n<div id=\"\">\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\"><a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/games\/avowed\">Avowed<\/a> and <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/games\/the-outer-worlds\">The Outer Worlds<\/a> developer Obsidian is reportedly also at risk of closure amid Microsoft\u2019s \u201creset\u201d of the Xbox business.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.thegamebusiness.com\/p\/xbox-divided-over-its-future-and\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" target=\"_blank\" rel=\"noopener noreferrer\">The Game Business<\/a> listed the Microsoft-owned studio, which developed the much-loved Fallout: New Vegas, alongside State of Decay developer Undead Labs, Psychonauts developer Double Fine, Hellblade developer Ninja Theory, and South of Midnight developer Compulsion as currently negotiating with Xbox leadership to avoid closure. Separately, <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/articles\/microsoft-reportedly-considering-canceling-marvels-blade-and-shutting-arkane-down\">Marvel&#8217;s Blade developer Arkane Lyon is also said to be under threat<\/a>.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">These studios may be sold rather than closed as part of a process that may take some time. And even if the studios are spun off, they may not avoid layoffs. IGN has asked Microsoft for comment about the layoffs reports, but it has yet to respond.<\/p>\n<p><output class=\"box-wrapper jsx-2673806401\" data-cy=\"article-slideshow\"><button type=\"button\" style=\"display:none\" class=\"jsx-2228525885\"\/><span data-cy=\"slideshow-view-trigger\"><\/p>\n<div data-cy=\"slideshow-preview\" class=\"jsx-1711207865 slideshow-preview\">\n<h3 class=\"title5 jsx-62124236 jsx-1085005187\" data-cy=\"slideshow-preview-title\">The 100 Best Xbox Games of All Time<\/h3>\n<div data-cy=\"slideshow-images-container\" class=\"jsx-1711207865 images-container\"><button type=\"button\" data-cy=\"hero-image\" aria-label=\"Open Slideshow\" class=\"jsx-1711207865 hero-image\"><span class=\"button-text jsx-729543028 button button--primary jsx-3381835873 jsx-4266531355 row-pagination-button next contained centered round large\" data-cy=\"paginate next\" title=\"Open Slideshow\"><span class=\"ign-icon right-chevron jsx-2750866048 jsx-2919720488\" role=\"presentation\" aria-hidden=\"true\" data-cy=\"right-chevron\" style=\"mask:url(https:\/\/kraken.ignimgs.com\/_next\/static\/media\/RightChevron.272be43c.svg?cors=1) no-repeat center center \/ contain;background:currentColor\"\/><\/span><\/button><\/div>\n<\/div>\n<p><\/span><\/output><\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">Obsidian is without a new announced project after <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/articles\/obsidians-the-outer-worlds-2-underperformed-and-there-wont-be-a-third\">both Avowed and The Outer Worlds 2 failed to hit commercial targets<\/a>. There were rumors that the developer was making another Avowed game, but The Outer Worlds 3 was said to be not in development. On a more positive note, <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/games\/grounded-2\">Grounded 2<\/a> \u2014 yet another 2025 launch \u2014 was a hit. But of the three games Obsidian released last year, it had the shortest (and almost certainly the cheapest) development period by far.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">Microsoft bought Obsidian alongside Wasteland developer inXile back in 2018. Since then it has released The Outer Worlds 1 and 2, Grounded 1 and 2, Pentiment, and Avowed.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">New Xbox boss Asha Sharma is reportedly speeding up development on new The Elder Scrolls, Fallout, and Halo games, and some had thought that Obsidian might have been drafted in to make a new Fallout game as part of that, either a Fallout: New Vegas 2 or something else in the franchise.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">&#8220;I know everyone on the internet, on every game we ever announce, will constantly reference back to, &#8216;When&#8217;s the next New Vegas?'&#8221; <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/articles\/obsidian-knows-whenever-it-announces-a-new-game-everyone-asks-about-fallout-new-vegas-2-but-it-loves-making-original-ip-and-sequels-to-them\">Obsidian&#8217;s VP of operations Marcus Morgan said last year<\/a>, referencing the studio&#8217;s beloved Fallout game that&#8217;s served as the inspiration for the hit Amazon TV series&#8217; second season setting.<\/p>\n<p><span data-cy=\"tierlist-view-trigger\"><\/p>\n<section class=\"box-wrapper jsx-2673806401\" id=\"how-do-you-rank-obsidians-games\" data-cy=\"how-do-you-rank-obsidians-games\">\n<div class=\"card jsx-1339469126 jsx-1355461925 box jsx-2627838217\"><span class=\"stack jsx-3547261442 jsx-2986308351\"><span class=\"stack jsx-2959124702 jsx-4269505506 TierListHeader_header__xyy5a\"><span class=\"stack jsx-3647836811 jsx-4269505506 TierListHeader_title__UxzQx\"><img decoding=\"async\" class=\"ign-icon icon-tier-list jsx-2750866048 jsx-1879929830\" role=\"img\" aria-hidden=\"false\" data-cy=\"icon-tier-list\" alt=\"Tier List\" loading=\"lazy\" src=\"https:\/\/kraken.ignimgs.com\/_next\/static\/media\/TierList.c19f1c86.svg?cors=0\"\/><\/p>\n<h3 data-cy=\"title3\" class=\"title3 jsx-12333944 jsx-2321054750 TierListHeader_full__J6p2u\">How do you rank Obsidian&#8217;s games?<\/h3>\n<h3 class=\"title5 jsx-62124236 jsx-957202555 TierListHeader_compact__7JWp1 balanced\">How do you rank Obsidian&#8217;s games?<\/h3>\n<p><\/span><\/span><span class=\"stack jsx-3547261442\"\/><\/span><\/div>\n<\/section>\n<p><\/span><\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">Sharma sent shockwaves through the video game industry with her now infamous \u201creset\u201d memo, in which she revealed that Microsoft&#8217;s gaming business has a 3% accountability margin (assumed to mean profit margin). &#8220;Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform, and hardware subsidy, but our annual revenue has declined nearly half a billion during that time. Going forward, this cannot continue,&#8221; Sharma said.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">Bloomberg&#8217;s Jason Schreier <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/articles\/amid-concern-over-xbox-studio-bloodbath-new-report-says-developers-are-being-punished-today-for-following-orders\"><u>has warned of a \u201cbloodbath\u201d at Xbox<\/u><\/a>. Meanwhile, Microsoft is reassessing its investment in externally developed games. <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/articles\/007-first-light-hitman-developer-io-interactive-announces-layoffs-after-relationship-with-an-external-partner-on-fantasy-project-ends\">It just pulled funding for IO Interactive\u2019s upcoming fantasy project<\/a>, which Xbox was set to publish. Hideo Kojima\u2019s Xbox horror game OD, however, <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/articles\/hideo-kojimas-xbox-horror-game-od-is-safe-from-microsofts-reset-plan-but-other-games-are-on-the-chopping-block\">is safe from the chopping block<\/a>.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">Microsoft told <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-30\/microsoft-s-xbox-pulls-out-of-project-fantasy-video-game-from-io-interactive\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" target=\"_blank\" rel=\"noopener noreferrer\"><u>Bloomberg<\/u><\/a> it is \u201ctaking a fresh look at where we invest so we\u2019re focusing on our highest priorities.\u201d<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">\u201cWe&#8217;re not reducing our overall investment in games. We expect to invest about the same in content as we did last year. What&#8217;s changing is where we&#8217;re investing and the kinds of projects we&#8217;re backing,\u201d Microsoft said.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.theinformation.com\/articles\/microsoft-considered-spinning-xbox-plans-new-halo-fallout-games\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" target=\"_blank\" rel=\"noopener noreferrer\"><u>The Information<\/u><\/a> reported that Microsoft hadn&#8217;t ruled out turning the Xbox brand into a wholly-owned subsidiary in a move that could result in Xbox being operated as a joint venture with other partners or even potentially sold.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">This week, <a rel=\"nofollow\" target=\"_blank\" class=\"link jsx-1337145738 jsx-3925284146 underlined\" data-cy=\"styled-link\" href=\"https:\/\/sea.ign.com\/articles\/were-done-paying-for-executives-failures-unionized-xbox-developers-hold-press-conference-to-make-their-point-as-microsoft-reportedly-readies-massive-layoffs\">unionized Xbox workers called for immediate bargaining following the layoff reports<\/a>, hosting a press conference to say \u201cwe&#8217;re done paying for executives&#8217; failures.\u201d A Microsoft spokesperson told IGN it will continue to negotiate with the CWA to reach agreements across Xbox.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">&#8220;We respect the right of our team members to make their voices heard,&#8221; the spokesperson said. &#8220;We have a long track record of good faith partnership with labor organizations, as demonstrated by the several finalized bargaining agreements our teams have reached with the CWA and our labor principles. We are continuing to negotiate in good faith with the CWA to reach agreements across Xbox.&#8221;<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\">Microsoft cut an eye-watering 9,000 staff in July 2025 in a company-wide round of layoffs that also hit gaming. A number of titles were canceled as part of those cuts, including Rare\u2019s Everwild, and studios shut down, such as Perfect Dark developer The Initiative. Staff who remain at Xbox are now bracing themselves for a potential repeat situation just a year later.<\/p>\n<p data-cy=\"paragraph\" class=\"paragraph jsx-2269604527\"><em>Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.<\/em><\/p>\n<\/div>\n<p><em> \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n<p><em> \u2018 Some details of this article were extracted from the following source sea.ign.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Avowed and The Outer Worlds developer Obsidian is reportedly also at risk of closure amid Microsoft\u2019s \u201creset\u201d of the Xbox business. The Game Business listed the Microsoft-owned studio, which developed the much-loved Fallout: New Vegas, alongside State of Decay developer Undead Labs, Psychonauts developer Double Fine, Hellblade developer Ninja Theory, and South of Midnight developer [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2484997,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[],"class_list":["post-2484996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2026\/07\/Obsidian-Entertainment-Reportedly-Also-at-Risk-of-Closure.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2484996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2484996"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2484996\/revisions"}],"predecessor-version":[{"id":2484998,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2484996\/revisions\/2484998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2484997"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2484996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2484996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2484996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}