
Update []:
Shortly following today's report from The Game Business, journalist Jason Schreier has stated Obsidian actually isn't at risk of being shuttered by Microsoft. In a social media post, he said:
"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."
Original Story: The Outer Worlds and Avowed developer Obsidian has been named as yet another team within Xbox Games Studios at risk of closure.
The Game Business lists the RPG specialist alongside the other publicly named studios fighting for their futures: Ninja Theory (Hellblade), Compulsion (South of Midnight), Double Fine (Psychonauts), and Undead Labs (State of Decay 3).
Christopher Dring of the outlet states the five developers "and others" are in "deep in negotiation with Microsoft to avoid closure". Previously, it's been said these teams may be let go of and made independent once more. The scary part of is that "others", besides the already five named Xbox studios, are also in talks to avoid being shut down by Microsoft.
The significant cuts are expected to be confirmed next week.