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Update: Everyone\u2019s favourite video game journalist, Bloomberg\u2019s Jason Schrier has shared a brief post on social media<\/a> that refutes the report detailed below: <\/p>\n Despite a report this morning, I can confirm that Obsidian is not<\/em> in negotiations to avoid shutting down. 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.<\/p>\n<\/blockquote>\n Much ado about nothing then? The Original Report continues below:<\/p>\n With reports over the last few weeks that studios like Ninja Theory, Double Fine, Compulsion Games, Undead Labs and Arkane<\/a>, a new report suggests that Xbox Game Studio\u2019s Obsidian Entertainment is also \u2018deep in negotiation\u2019 with parent company Microsoft over its future.<\/p>\n This news comes via Chris Dring\u2019s The Game Business<\/a>, where he shares a deeper look at what\u2019s going on with Microsoft as Xbox CEO Asha Sharma and the leadership pivot to \u2018reset\u2019 the business. <\/p>\n Per Chris\u2019 report, which you can read here <\/a>\u2013 \u201cStudios such as Compulsion<\/a>, Ninja Theory<\/a>, Double Fine<\/a>, Obsidian<\/strong>, Undead Labs<\/a> and others are deep in negotiation with Microsoft to avoid closure. The impact of this will likely reverberate across the business<\/a>.<\/em>\u201c<\/p>\n He adds a little more detail beyond just adding Obsidian Entertainment to the list of reported studios facing difficulty, saying \u201cThere\u2019s a real sense amongst some teams that they\u2019re being punished for the poor performance of Call of Duty. That is the reality. Even if Obsidian had delivered an incredible year, even if The Outer Worlds 2 and Avowed had performed five times the numbers that they did, it wouldn\u2019t have offset the drop on Call of Duty. A game like that, and Candy Crush, and Minecraft, and Warcraft, make a lot of Xbox\u2019s output seem almost insignificant.<\/em>\u201c<\/p>\n It\u2019s frustrating to read, because only last year, Xbox was touting \u2018The Year of Obsidian\u2019 which saw the team deliver not only action RPG Avowed<\/a>, but also The Outer Worlds 2<\/a> and an extra surprise \u2013 Grounded 2<\/a>, in partnership with Eidos Montreal. <\/p>\n With upcoming layoffs set to be announced in detail from around July 6th, all that fans can do right now is wait. <\/p>\n How do you feel about this report? Let us know in the comments below.<\/p>\n Enjoying\u00a0DayOne<\/a>? Do us a favour, and make us a \u2018Preferred Source on Google<\/a>\u2018 \u2013 that way, you\u2019ll only be delivered more gaming coverage from our team.<\/p>\n Head over and let us know your thoughts in the Day<\/a>O<\/a>ne Forums<\/a>, the perfect place to chat about games if you\u2019re a little more old-school and prefer things in a longform format.<\/p>\n\n
Original Report:<\/h4>\n
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