Yesterday, it was reported by The Game Business that Obsidian was one of the studios that Xbox was considering shutting down as part of its upcoming layoffs. However, this was quickly refuted by Bloomberg’s Jason Schreier, making it unclear what exactly is going on behind the scenes.
Now, a third source is adding to the story, and this might explain why we got two very different reports on Obsidian’s fate. According to reporter Jeff Grubb, Obsidian was indeed in Xbox’s crosshairs, but only briefly – and the confusion stems from the fact that Xbox is making decisions like this over the course of hours, rather than weeks or months as it used to.
After All That Confusion, It Sounds Like Obsidian Really Was Under Threat, But Xbox Has Decided To Spare It
Grubb discussed this over on his YouTube channel. Addressing the confusion regarding the two different reports about Obsidian, Grubb shared what he had heard from his sources.
He starts by defending the original reporter, Chris Dring of The Game Business, for claiming that Obsidian was at risk in the first place.
“Dring didn’t just say that. He didn’t just make that up,” says Grubb. “I went and looked, and yeah, that was going around inside Microsoft. I’m not hearing this from other reporters or anything like that. Inside of Microsoft, it was going around that something was happening there.
“It sounds like things just happened very fast with Obsidian,” he continues. “And maybe they weren’t ever at risk of being shut down, but I don’t know if it’s as clear as they were always safe. And Jason Schreier didn’t say they were always safe. He just said [there were] no negotiations, and they’re safe now.”
“Safe” Xbox Studios Are Now Facing Layoffs, Says Obsidian Co-Founder
More evidence points to Xbox making cuts at beloved studios in its upcoming layoffs.
Grubb expands on this, saying that Xbox’s decision-making has been so chaotic lately that even its own employees can’t keep up. “They are making decisions within a 24-hour period,” he says. “These are the kinds of decisions that previously would have taken weeks or months. And now, [Asha Sharma, CEO] is turning these things around instantaneously.”
As an example, Grubb says that some Xbox workers were unaware that Gears of War: E-Day was going Xbox console exclusive until the news broke publicly. Evidence suggests that this decision was indeed made rather last-minute, but Xbox denies this.
To conclude, Grubb says that it’s a “f**king clown show” at Xbox right now, with workers still wondering which studios will be caught up in the layoffs. At the very least, it sounds like Obsidian is safe.
- Date Founded
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April 4, 1975
- CEO
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Satya Nadella
- Headquarters
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Redmond, Washington, United States

