January 2025 - after 20 amazing years at Obsidian, Josh Sawyer leaves the studio to pursue new challenges
January 2025 - Jason Schreier unveils troubling development details on Avowed, lack of team cohesion and poor leadership being cited as the main reasons. Microsoft assures players and the press that the studio is in great shape, confirms the game is on track for February release and that Obsidian is one of its most important studios
February 2025 - Avowed releases to mixed reception and poor performance, caused by strong competition from another RPG title released in the same time window
March 2025 - after much deliberation, Outer Worlds 2 is cancelled, followed by layoffs at Obsidian. Microsoft ensures players and the press that this will ensure the long-term success of the studio
May 2025 - Microsoft announces the closure of Obsidian Studios to make sure the business is healthy for the long-term. These decisions are never easy to make, Xbox Game Studios head Phil Spencer says, wishes all the Obsidian developers luck in their future endeavors
June 2025 - former Obsidian CEO Feargus Urquhart takes his new position as the head of Xbox Game Studios, replacing Phil Spencer. "My greatest triumph? I survived," Urquhart says.