Updated
Updated · Video Games Chronicle · Jul 2
Xbox Keeps Obsidian as Schreier Denies Closure Talks Ahead of July 6 Cuts
Updated
Updated · Video Games Chronicle · Jul 2

Xbox Keeps Obsidian as Schreier Denies Closure Talks Ahead of July 6 Cuts

3 articles · Updated · Video Games Chronicle · Jul 2

Summary

  • Jason Schreier said Obsidian is not negotiating to avoid shutdown and will remain with Microsoft, directly disputing a report that grouped the studio with other Xbox teams at risk.
  • The denial comes as Microsoft prepares significant Xbox layoffs starting July 6 under CEO Asha Sharma's planned reset, with reports pointing to closures, spinoffs, mergers and canceled games.
  • Compulsion, Ninja Theory, Double Fine and Undead Labs have been cited as vulnerable studios, while Arkane reportedly faces closure unless Microsoft finds a buyer.
  • Obsidian's position had drawn scrutiny after Bloomberg reported Avowed and The Outer Worlds 2 delivered disappointing results, prompting the studio to reassess budgets, scope and development timelines.

Insights

As nearly-finished games face cancellation, why should gamers trust any future promises or announcements from Xbox?
With profits plummeting to just 3%, are these mass layoffs the final step before Microsoft sells off its entire Xbox division?
Is Xbox's pivot from creative 'prestige' to pure profit the end of artistic risk-taking in the mainstream gaming industry?