Fri. Jul 3rd, 2026

Obsidian Entertainment Reportedly Among Studios Facing Xbox Restructuring

Following a string of unfortunate news in recent weeks, new information suggests that Obsidian Entertainment is among the teams potentially slated for closure as part of Xbox’s upcoming restructuring. This renowned studio, the creative force behind acclaimed game series such as Pillars of Eternity, The Outer Worlds, and the upcoming Avowed, joins a growing list of other studios reportedly in precarious positions. Other studios mentioned in this context include Double Fine, Ninja Theory, Undead Labs, and Arkane.

It remains to be seen which specific teams will ultimately be affected. However, with Microsoft’s fiscal year having concluded on June 30th, official announcements are anticipated in the near future.

By Finnegan Blackthorne

A Calgary-based gaming journalist with over seven years of experience covering the Canadian gaming landscape. Started his career documenting local gaming conventions before expanding into national industry coverage. Specializes in Canadian indie game development and emerging gaming technologies. His comprehensive reporting on prairie gaming culture and developer interviews has established him as a prominent voice in the Canadian gaming community

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