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Obsidian Entertainment, Creator of Avowed and Fallout: New Vegas, Reportedly Faces Closure Risk Amid Xbox Restructuring

02/07/2026 · 0

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Obsidian Entertainment, the developer behind Avowed, The Outer Worlds, and the beloved Fallout: New Vegas, is reportedly at risk of closure as part of Microsoft's ongoing 'reset' of the Xbox business. According to The Game Business, the Microsoft-owned studio is among several teams—including Undead Labs, Double Fine, and Ninja Theory—that are currently negotiating with Xbox leadership to avoid being shut down.

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