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A new report from The Game Business suggests that Obsidian Entertainment is another studio currently negotiating with Microsoft to avoid closure as part of the company's controversial reassessment of its business.

Latest Developments in Game

Only yesterday, we heard that Dishonored developer Arkane is reportedly one of five studios Microsoft is targeting to close down as part of its big 'reset'.

Industry Impact

This follows on from previous comments highlighting Double Fine, Compulsion Games and Ninja Theory as other potential victims of Microsoft and Xbox's latest wave of sweeping layoffs.

What This Means for Businesses

Undead Labs is also affected by the move.

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