No, Xbox isn’t shutting down Obsidian despite fresh rumors – Windows Central

Ah yes, one of Xbox’s most acclaimed studios, known for games like Fallout: New Vegas, Grounded and The Outer Worlds, is shutting down… oh wait, never mind. It’s just the Xbox rumor mill spinning up another baseless claim.

Forgive the sass, but it’s becoming exhausting. Yes, I’m fully aware a major shake-up is underway at Xbox, and we all have every right to be on the edge of our seats. At the same time, though, I’d quite like to enjoy my hobby of gaming without feeling like the entire industry is crumbling around me every other day.

The initial rumor that Obsidian could be facing closure came from The Game Business. The rebuttal, however, came from none other than Bloomberg’s Jason Schreier, whose reporting is not something to ever bet against.

Schreier took to BlueSky, stating: “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.“

For what it’s worth, our sources have not once indicated that Obsidian was part of the cadre of studios facing closure or selling, but Schrier’s info is all you need here to know that it’s likely bogus info.

It seems we won’t have to wait much longer to find out what actually happens at Xbox. On the one hand, I’m relieved that the uncertainty might finally be coming to an end. On the other, I’m already worried for my fingers as I frantically cover whatever unfolds. I might have to invest in one of those finger grip strengtheners in preparation …

I will say, the fact so many people believed Xbox could potentially close Obsidian speaks volumes about the level of distrust currently surrounding the brand. Clearly something within Xbox needs to change. I just hope those impacted by whatever happens land on their feet, and that the damage isn’t as severe as many are fearing.

With that said, do let me know your thoughts in the comments, and as always, be sure to take part in our poll below.

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.

Adam is a Psychology Master’s graduate passionate about gaming, community building, and digital engagement. A lifelong Xbox fan since 2001, he started with Halo: Combat Evolved and remains an avid achievement hunter. Over the years, he has engaged with several Discord communities, helping them get established and grow. Gaming has always been more than a hobby for Adam—it’s where he’s met many friends, taken on new challenges, and connected with communities that share his passion.