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Microsoft in talks to buy Obsidian - Report

Xbox outfit closing in on a deal for Pillars of Eternity developer with one source telling Kotaku it's "a matter of when, not if"

Microsoft may not be done bolstering its first-party studio lineup just yet. According to Kotaku, the Xbox maker is closing in on a deal to acquire Obsidian Entertainment.

Kotaku cites "three people briefed on the negotiations" with the news that the two companies have all but reached an agreement for an acquisition. One said it was "90%" done, while another described it as "a matter of when, not if."

Both companies declined to comment on the report.

Obsidian would be the latest feather in the cap of Microsoft as it looks to strengthen its first-party studio lineup. At this year's E3, Microsoft announced the addition of five studios to its roster of owned developers: Playground Games, Undead Labs, Ninja Theory, Compulsion Games, as well as the newly formed outfit The Initiative.

Obsidian would bring some expertise in the role-playing game genre into the Microsoft fold. The studio built its name on classics like Star Wars: Knights of the Old Republic II and Neverwinter Nights 2, and more recently has found success with the crowdfunded Pillars of Eternity series and Tyranny. Along the way, it has also dabbled in other genres with titles like the action-heavy Alpha Protocol and the free-to-play tank shooter Armored Warfare.

Obsidian has been independent since its establishment in 2003. When we spoke with co-founder Feargus Urquhardt about the first 13 years as an independent studio in 2016, we also asked him what he wanted out of the coming 13 years.

"I am fine being independent in 13 years," Urquhardt said at the time. "I would be okay if we got purchased, but I would be fine independent. Ultimately, we need to be good at what we do. It goes back to what we were saying about things that are beyond our control. Well, there are things that are in our control, so let's not screw those things up."

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Brendan Sinclair avatar
Brendan Sinclair: Brendan joined in 2012. Based in Toronto, Ontario, he was previously senior news editor at GameSpot.
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