New Vegas Developer Obsidian [UPDATE]

[UPDATE: Bloomberg reporter Jason Schreier has refuted the claims of Obsidian in the below report from The Game Business. He said that it would be clearer on Monday, July 6, but that Xbox is indeed keeping Obsidian Entertainment. Original story follows.]

Despite reports this morning, we can confirm that Obsidian is *not* in negotiations to avoid closure. Xbox is retaining Obsidian, according to people familiar with the situation, although many of the details surrounding the layoffs have not yet been revealed (the picture will become clearer on Monday). — Jason Schreier (@jasonschreier.bsky.social) 2026-07-02T14:24:00.242Z

Fallout: New Vegas, declaredand outside worldDeveloper Obsidian Entertainment could close in the near future if negotiations with Xbox don't go in the studio's favor. While everything about Xbox's planned “reset” is scary and surprising, it's an odd choice considering how many games Obsidian has produced since the acquisition, not to mention its reputation as the studio behind it. Fallout: New Vegas.

Obsidian Entertainment was one of Xbox's early acquisitions that they shopped around in late 2010/early 2020. Microsoft acquired it and released it under the name Xbox Game Studios in 2018. Avowed, The Outer Worlds 2, Pentement, Grounded, and ground 2 (PS5 scheduled for release in August) Obsidian development Fallout: New Vegasbest fallout Many fans wanted Obsidian/Bethesda/Xbox to give the studio a new take on the IP. But it's hard to say whether that's on the table.

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Avowed base developer Obsidian is said to be working on four new games, and we can't wait.

Obsidian Entertainment on Xbox could release four more games, giving new hope to fans of Grounded, Avowed, and other popular RPG series.

Obsidian added to list of potential Xbox Game Studio exits.

According to a recent report from The Game Business, Compulsion, Ninja Theory, Double Fine, Obsidian Entertainment, and Undead Labs are all negotiating with Microsoft and Xbox to avoid closure. This is the first report to mention Obsidian Entertainment, other studios have been mentioned in other outlets and reports. Additional negotiations are reportedly underway with other studios as well. “These impacts are likely to impact the entire business,” the report said. New Xbox CEO Asha Sharma recently announced difficult times ahead for Xbox, adding that the business aims to invest in its biggest games and IP unlike any other project. fallout and Elder Scrolls There were two of the IPs specifically mentioned as requiring further investment.

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Interestingly, Obsidian Entertainment director Josh Sawyer recently spoke about working on a new Fallout game. When asked about new work Fallout: New Vegas Because he and everyone at Obsidian were constantly asked about a “sequel,” he responded, “It's not up to me.” Instead, he mentioned a “Titan” who would be in charge of the IP and make decisions, but that hasn't emerged yet. Obsidian Entertainment doesn't have any announced games at the moment, but it's unknown if they're secretly working on a Fallout game, and even less likely if the aforementioned report is true. According to Sawyer, the new fallout If that happens, the game will be allocated to some extent. Because that's “what happened in New Vegas.”

Overall, no one wants to see a studio close. Obsidian Entertainment has produced some great games, even if the commercial aspects haven't always been successful. Compulsion game released south of midnight It was previously known to represent a different aspect of the Xbox portfolio than pure profit. Ninja Theory just announced: Senua For a 2027 release, Undead Labs has been working on: State of Decay 3Double Fine is a legendary name.

According to some reports, there may be a way for these studios to spin off, depending on negotiations and interested buyers, to keep the name and exit Xbox, so to speak. But those decisions take time, and given Xbox's recent moves, it seems like time is running out.