Microsoft’s ongoing restructuring of its gaming division may affect Obsidian Entertainment, according to a recent report by The Game Business, though the studio’s status remains unconfirmed. The report follows earlier announcements that several Microsoft‑owned studios, including Compulsion Games, Ninja Theory, Double Fine and Undead Labs, are under review as part of cost‑cutting measures. Obsidian, acquired by Microsoft in 2021, has released multiple titles since then, such as The Outer Worlds, Grounded and Avowed. The Game Business listed Obsidian as potentially facing closure, a claim not reflected in previous reports. Gaming journalist Jason Schreier said he has heard that Obsidian is safe, contradicting the report. KitGuru noted that no official confirmation has been provided and that Microsoft has not yet announced any cuts. The company plans to reveal further details before its upcoming earnings call later this month.