Obsidian CEO responds to worries Xbox could shut them down, too: 'I'm not worried about tomorrow'

A gray cloud loomed over this year's big summer game showcases: Over 16,000 game developers have lost their jobs since 2023, many of whom were casualties of success at companies that reported huge profits this year. One of the largest cost cutters has been Xbox, which in January cut 1,900 jobs at Activision Blizzard and in May shut down four studios: Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Games. The closure of Tango was taken especially hard, as the studio was still basking in the light of Hi-Fi Rush, a critical and commercial success by all of Microsoft's metrics.

To developers, the unexpected closures sent a clear message: Making good, profitable games is no longer good enough. Public trust in Microsoft as stewards of the studios it spent years gobbling up has been shaken—what beloved, storied studio will Xbox suddenly decide to shut down next?

Hours after Microsoft's dazzling June showcase that debuted a new Doom, Perfect Dark, and Gears of War, PC Gamer sat down with Obsidian CEO and founder Feargus Urquhart, who premiered a new Avowed trailer during the show, to get his perspective on layoffs and Xbox ownership in 2024.

«It's just horrible,» Urquhart said of Xbox's recent closures and layoffs. «At Obsidian we had to go through three layoffs [before being acquired]. They're right behind my parents' deaths as some of the worst days I've ever had, so no, these are just not great things.»

Obsidian was one of the earliest acquisitions of Xbox's spending spree, joining the company in 2018. The beloved RPG maker has released two games under the Xbox label (Grounded and Pentiment) and is preparing to launch another. Urquhart knows that some fans are worried about what could happen to Obsidian in the current Xbox climate.

As long as I'm doing my job, and doing it well, I'm not worried about tomorrow.

«Everything that's happened over the last six months with layoffs and the pinnacle of this stuff with Tango and Arkane and the other studios, it