Jason Schreier Denied Obsidian Could Be Shut Down and Confirmed They’re Not Working on a New Fallout Game

There are still ongoing debates about which game studios might be affected by Microsoft's upcoming restructuring process. Although The Game Business reported that Obsidian Entertainment could be among those that can be potentially shut down, it turns out that this is not quite right.

Bloomberg’s Jason Schreier has denied recent claims that Obsidian Entertainment might be shutting down soon. He wrote this on his Bluesky page, where he stated that Xbox has no plans to close the studio. Shreier also mentioned that we can expect a clearer picture of any potential studio closures next Monday, July 6. You can check out Schreier's exact words below:

“Despite a report this morning, I can confirm that Obsidian is *not* in negotiations to avoid shutting down. Plenty of details are still up in the air surrounding the layoffs (picture will be clear on Monday) but Xbox is keeping Obsidian, according to people familiar with the situation.”

Meanwhile, The Game Business representatives have already acknowledged their mistake on social media that Obsidian is allegedly in talks with Microsoft to avoid closure, essentially confirming Jason Schreier's statements. At the same time, Jordan Middler from VGC claimed that Obsidian might be working on a new Fallout video game; however, Schreier has denied this as well. Responding to a question from a user on the ResetEra forum, he wrote, "FWIW this isn't true, although I suppose it could become true real soon given Sharma's reported new direction." Earlier, Obsidian's former founder, Chris Avellone, stated that the studio is working on a sequel to Avowed, but no official information has been released so far.

Speaking about possible Microsoft-owned studios that might be shut down, The Verge recently published a report where five gaming divisions were mentioned in the potential closure list, and a special focus was on Arkane Studios. Currently, Arkane is working on Marvel's Blade, and if the studio is about to be closed, the project could be at risk of cancellation.

Are you excited that Obsidian Entertainment will not be shut down as a result of Microsoft's restructuring process? Share your thoughts in the comments below!