- Status: Rumor Debunked
- Affected Entity: Obsidian Entertainment (Xbox Game Studios)
- Source of Clarification: Jason Schreier (Bloomberg)
Rumors swirling online claimed that Obsidian Entertainment, the developer behind Fallout: New Vegas and The Outer Worlds, was facing imminent closure. Those claims have been officially disputed by industry insiders.
Schreier confirms studio safety
Bloomberg reporter Jason Schreier took to social media to address the speculation directly. He stated that despite earlier reports suggesting otherwise, Obsidian is not currently in negotiations to avoid shutting down. According to people familiar with the situation, Xbox intends to keep the studio operational.
Schreier noted that while many details regarding broader layoffs remain unclear, the picture for Obsidian specifically is stable. This confirmation comes after a report from The Game Business initially sparked fears that the studio was part of a wave of closures or sales within the Xbox division.

What this means for you
If you are an owner of games developed by Obsidian, your titles remain supported. The confirmation suggests that ongoing development projects and future releases from the studio are likely to proceed as planned, at least for the immediate future.
The rapid spread of closure rumors highlights significant anxiety within the gaming community regarding Xbox’s current restructuring efforts. While the wider division may face changes, this specific update offers relief for fans of the studio’s RPGs and survival titles.
Source: Windows Central
Over to you: Do you trust Xbox’s current communication regarding studio closures, or do you prefer to wait for official statements?