Xbox May Shut Down Obsidian Entertainment, Too

As a massive layoff plan looms over Xbox's various subsidiaries, new reports suggest that the iconic RPG studio Obsidian Entertainment is on the chopping block, too.

According to a July 2 The Game Business report, it appears that Compulsion Games, Double Fine, Ninja Theory, and Undead Labs aren't the only studios Xbox is looking to offload. Obsidian Entertainment--the studio behind games like Avowed, Fallout: New Vegas, Grounded, The Outer Worlds, and more--may get cut loose as well.

As The Game Business noted, Xbox is looking to "reallocate where it spends money." Reportedly, the company wants to invest in its big franchises--presumably the likes of Gears of War and Halo--but it needs to trim the fat to do so. And doing so means either selling or shuttering a handful of Xbox Games Studios subsidiaries.

Like many of these other studios, The Game Business clarified that these teams are "deep in negotiation" with Microsoft to avoid closure.

This story is developing...