Microsoft Acquires Game Studios Obsidian and inXile Entertainment

At Xbox fan event X018, Microsoft announced the purchase of Fallout: New Vegas and South Park: The Stick of Truth studio Obsidian Entertainment. In addition to this, the company also bought inXile Entertainment, creator of Torment: Tides of Numenera and Wasteland 2. The announcement follows rumours of Microsoft having acquired Obsidian first reported by gaming blog Kotaku. Post-acquisition, both Obsidian and inXile will still function independently with each tasked with building "new RPG experiences" for Microsoft's target audience.

"It was important for us to find studio partners who have strong creative visions, a mastery of their medium and are expert world-builders," Matt Booty, Corporate Vice President Microsoft Studios said in a statement.

"Obsidian and inXile embody all of these qualities while also bringing expertise on the PC platform and a unique RPG focus to the table. They will continue to operate autonomously with their unique talents, IP and expertise.

"As part of Microsoft Studios, Obsidian and inXile will have the support and freedom to fully realise their creative ambitions on both existing franchises and new RPG projects."

At its E3 2018 press conference, Microsoft announced that it has acquired four gaming studios. These studios are Undead Labs, Ninja Theory, Playground Games, and Compulsion Games. The acquisition of some studios such as Playground Games, which has been making the Forza Horizon series of Xbox and PC exclusive games, and Undead Labs (State of Decay) did not really come as a big surprise, but few could have anticipated the acquisition of some of the other studios.

There's also a fifth studio in the mix, called The Initiative, which is based in Santa Monica. These five studios are Microsoft's way of reaffirming its commitment to first-party games. The lack of first-party titles has seen the Xbox One fall behind the pecking order among the consoles of this generation.

If you're a fan of video games, check out Transition, Gadgets 360's gaming podcast. You can listen to it via Apple Podcasts or RSS, or just listen to this week's episode by hitting the play button below.