Obsidian Entertainment at death's door, but it might be safe

Obsidian Entertainment was reportedly in serious danger of being shut down, but maybe another major twist has arrived in this whole story. This is definitely the latest shock for Xbox!

After many rumors that Microsoft was considering shutting down a large number of Xbox studios, another very concerning report appeared... This time it's Obsidian Entertainment, which found itself at the center of attention and at the center of this whole story. Obsidian Entertainment is the studio behind games such as Avowed, The Outer Worlds, and Fallout: New Vegas. However, just a few hours later, new information emerged that completely changed this worrying situation.

The initial reports claimed that Obsidian Entertainment was one of the studios negotiating with Microsoft to avoid being shut down during the major restructuring of the entire Xbox division.

However... Shortly afterward, journalist Jason Schreier spoke out, claiming that he had talked to sources familiar with the entire situation and that Obsidian Entertainment is actually not facing closure after all. Instead, Microsoft reportedly plans to keep this legendary studio. Although numerous layoffs and changes within Xbox are still expected, it seems that the future of Obsidian Entertainment is safe. (At least for now.)

Fans initially reacted with a great deal of shock and fear. Thankfully, the atmosphere became much more positive after Schreier's claims.

On social media and across the internet, many people say they will only breathe a sigh of relief once Microsoft officially confirms its plans and restructuring strategy. Others believe this entire situation shows just how uncertain the future of Xbox studios currently is because of these major changes.

Although the first reports suggested that Obsidian Entertainment could become the next major studio that Microsoft shuts down, newer reports indicate that this may not actually be the case.

For now, it looks like the studio will continue operating, but this entire situation shows just how unstable things currently are within Xbox, and why fans are paying close attention to every new piece of information.