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Microsoft Might Be Acquiring Obsidian Entertainment

The Xbox first-party family might be getting another member, according to brand new reporting from Kotaku's Jason Schreier, who has as solid a track record with these things as anyone. According to Schreier, Microsoft has its eyes on acquiring independent game studio Obsidian Entertainment, a move that would further grow the company's software portfolio and lend it some expertise in a much-needed area: role-playing games.


Obsidian previously worked on Star Wars: Knights of the Old Republic 2 — The Sith Lords; Neverwinter Nights 2; Fallout: New Vegas; South Park: The Stick of Truth; and the Pillars of Eternity series. All of which are either outright RPGs or games with RPG elements.

Most recently, the studio released Pillars of Eternity 2: Deadfire after a highly successful crowdfunding campaign.

Believe it or not, this isn't the first time Microsoft has been mentioned as a potential Obsidian suitor. Late this past summer, a rumor hit message board ResetEra by way of a user named Klobrille, claiming that a letter of intent existed for a Microsoft acquisition of Obsidian Entertainment. But that was in early August 2018, and after some time passed without action, the rumor faded into obscurity.


Even then, fans of Microsoft had been calling for the company to acquire Obsidian — along with some other independent studios — as far back as June 2018.

Should Kotaku's sourcing hold true, and should Microsoft indeed acquire Obsidian Entertainment, the studio would join a long list of recent additions to the Xbox brand. Microsoft announced at E3 2018 that it had quietly purchased several other independent studios, including Ninja Theory, Playground Games, Compulsion Games, and Undead Labs. On top of that, the company created a brand-new first party studio called The Initiative, headed by ex-Crystal Dynamics boss Darrell Gallagher.

The purchase of Obsidian Entertainment would bring the number of Microsoft-owned game studios up to 11. Other studios on the roster include 343 Industries, The Coalition, Turn 10, Rare, Microsoft Studios Global Publishing, and Mojang.