Is yet another Microsoft studio, Obsidian, negotiating with Xbox to avoid closure? Conflicting reports emerge

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Eurogamer · 4 min read · studios

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The Game Business reported that Obsidian Entertainment is negotiating with Microsoft to avoid closure as part of a broader studio reassessment affecting Arkane, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. However, Bloomberg's Jason Schreier contradicted the report, stating Obsidian is not in negotiations to shut down.

Appeared in 2026-07-03.