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As XBOX layoffs loom, reports say that even Obsidian Entertainment, the developer responsible for\u00a0Fallout: New Vegas\u00a0and\u00a0The Outer Worlds, is\u00a0at risk. Now, a conflicting report suggests the developer is safe.<\/p>\n
Controversy surrounding the XBOX brand (namely impending XBOX layoffs) has continued to boil over since the XBOX Games Showcase at SGF 2026. Since then, reports have come out<\/a> that have put many of the big development studios at XBOX on the chopping block. These development studios include Double Fine, Arkane Studios, Ninja Theory, and Compulsion Games as developers currently in limbo, and new conflicting reports have surfaced today surrounding another studio in the XBOX catalogue, Obsidian Entertainment. <\/p>\n Obsidian Entertainment has been a cornerstone of the XBOX roster for years, delivering multiple well-received games to the platform (including Fallout: New Vegas<\/a>, The Outer Worlds<\/a>, The Outer Worlds 2,<\/a><\/em> and Avowed<\/em>) and continuing to provide updates to the titles after release. Reports have surfaced suggesting that Obsidian Entertainment is now in negotiations to keep itself employed amid the impending XBOX layoffs (mentioned during the XBOX \u2018reset\u2019 announcement<\/a>). If that isn\u2019t chaotic enough, a new report has surfaced saying that is not the case and Obsidian Entertainment is safe.<\/p>\n The initial report came from The Game Business<\/a> and instantly caught fire, making the rounds on the internet. Forum posts were erected on sites like Reddit<\/a>, making posts turn into forlorn therapy sessions over the potential closing of one of gaming\u2019s beloved studios. It turns out that\u2019s not the case, however, as Bloomberg\u2019s Jason Schreier has debunked the reports with his own post on social media. That post from BlueSky<\/a> can be seen below.<\/p>\n