Obsidian and Four More Gaming Studios Are Negotiating With Microsoft to Avoid Closure

Over the last few weeks, there have been reports that Microsoft is planning to shut down several gaming divisions as part of its restructuring process, which includes some major studios. Various names have been mentioned, but at this point it’s difficult to predict exactly which studios might be affected. However, negotiations are reportedly ongoing between the studios as they continue to look for compromises.

According to a new report from The Game Business, representatives from such studios as Obsidian Entertainment (known for Avowed and The Outer Worlds), Compulsion Games (South of Midnight), Ninja Theory (Hellblade), Double Fine (Psychonauts), and Undead Labs (State of Decay) are in talks with Microsoft to avoid closure. It has been stated that potential options on the table include withdrawal from the company to become independent or even selling the studios to other publishers.

Let’s not forget The Verge recently reported that Microsoft is allegedly considering shutting down at least five gaming studios, with Arkane Studios, the developers of the upcoming Marvel’s Blade, very likely to be among them, although there’s also the possibility that the studio might be sold instead. If that happens, the new video game about Blade might be cancelled. Additionally, earlier rumors also suggested potential layoffs and closures at the aforementioned Ninja Theory, Compulsion Games, and Undead Labs.

Despite numerous reports from various gaming outlets, Microsoft has not yet made any announcements regarding layoffs or closures within its gaming studios. Therefore, there is no absolute guarantee that the abovementioned gaming divisions will be affected by the company's ongoing restructuring process.