According to Kotaku, three people that have been "briefed on the negotiations" have said that Microsoft is now finalizing the deal between the two companies. Some of the sources close to the deal say that the announcement is just a matter of "when, not if".
If this deal goes through, it would be a huge change for Obsidian Entertainment who has remained independent for 15 years while developing beloved RPGs like Knights of the Old Republic 2, Fallout: New Vegas, and the more recent Pillars of Eternity series. Obsidian, on the other hand, said: "Unfortunately, we don't comment on rumors or speculation other than to say that the Rumors album by Fleetwood Mac still holds up".
That statement seems to suggest this deal will not alter Obsidian's agreement with Private Label, but it may impact which systems the untitled Obsidian project is released for.
Microsoft announced various other studio acquisitions at E3 2018, such as Ninja Theory, The Initiative, Undead Labs, Playground Games, and Compulsion Games. Tense disagreements between the two companies led Microsoft to cancel the game in 2012, and to some involved it was hard to imagine the pair working together again.More news: Google+ Shutting Down After Bug Leaks Info of 500k Accounts
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Microsoft's biggest weakness this generation has been its stable of first-party developers, and with Obsidian, the company now has an RPG-focused studio that can help it compete against the PlayStation's strong lineup.
There is no doubt about Sony having the majority of awesome game titles for their PS4 platform, but contrary to popular belief that may not be the case in the future years to come.
Obsidian's relationship with Microsoft doesn't leave much in the way of company friendship.