# Is yet another Microsoft studio, Obsidian, negotiating with Xbox to avoid closure? Conflicting reports emerge

> A new report from The Game Business suggests that Obsidian Entertainment is another studio currently negotiating with Microsoft to avoid closure as part of the company's controversial reassessment of its business.

- **Source:** [Eurogamer](https://www.eurogamer.net/is-yet-another-microsoft-studio-obsidian-negotiating-with-xbox-to-avoid-closure-conflicting-reports-emerge?utm_source=gearopen.com&utm_medium=referral&utm_campaign=feed&utm_content=6a4bc3b6254f0da55deb5693)
- **Published:** 2026-07-06
- **Category:** Gaming
- **Tags:** #microsoft #xbox
- **Canonical:** http://localhost:4321/a/6a4bc3b6254f0da55deb5693

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_GearOpen's distilled summary. The full original article is published at Eurogamer (source link above); GearOpen does not republish the source's full text._