According to sources close to Kotaku, Microsoft is now finalizing a deal to acquire the independent company to gain another first party studio. Said a second person: "It's a matter of when, not if". Working under Microsoft would ensure that the studio's projects would have ample funding, as the it has faced closure before in 2012. If Microsoft goes ahead and buys the California-based RPG specialists then the latter will join other video-game companies that have been snapped up by the tech giant.
"We do not comment on rumours or speculation", said a Microsoft spokesperson. The companies did not say anything about which consoles the RPG will be available on, and it isn't clear how this sale will affect that game. This year alone, it has acquired Playground, Ninja Theory, Undead Labs, and Compulsion.
Despite the apparent inevitability of the deal the two companies have a storied history and when Microsoft cancelled Xbox exclusive role-playing game Stormlands in 2012 Obsidian nearly went bust.
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Rumours that Obsidian could become part of the Xbox family have been doing the rounds ever since Microsoft announced the acquisition of five new studios at E3, and hinted they were after more. "People want to play great games on our platform". The RPG-company were to make a launch exclusive, Stormlands, for the Xbox One but it wasn't to be with a large amount of company intrusion before an eventual cancellation.
The Xbox department is under different leadership now, however, with Phil Spencer taking the top role in early 2014.