Other random answers (some may have been here, some on Reddit – if I’m wrong, I’ll post the right answers on Reddit).
Ubisoft: So Ubisoft didn’t really cut ties to Obsidian that I know of, nor did Obsidian turn them away because Obsidian had too much work – the conversation, to all accounts, never happened at all, because Ubisoft never spoke to Obsidian about doing the second game. One day the sequel was announced, and it was my understanding it was a surprise to Obsidian that anyone was working on a sequel – Obsidian didn’t proudly defy Ubisoft and tell them to fuck off because they were too busy: Ubisoft didn’t even call.
Transition from Publisher to Developer, Reversal of Roles: Feargus went through what I feel may have been poor training as a studio lead at Black Isle. In that position, he had more control over the projects, the funding, and more importantly, outside developers – in his role at Interplay, he was very much the publisher, and he was the one who made calls on BG1, BG2, etc. He controlled the funding, could make demands, could withhold payments, and also force capitulations in features and schedules.
Unfortunately, I believe this set a bad precedent for Feargus dealing with publishers in the future because we became one of the same outside developers he had formerly overseen when he was a publisher - the roles were reversed, and so was the power.
Suddenly he had to experience it from the other side, and he didn’t take to it well – the control was gone, and suddenly his demands could be ignored and fought, rather than accepted. The leverage was gone.
Even more importantly, Feargus’s behavior no longer had to be ignored by the person on the other end of the phone or in discussions in the conference room: Where once if Feargus asked a developer or contractor to do something, they would largely have to swallow it or fight to be polite in order to get paid or keep their project going, the reverse was very hard for Feargus to deal with, and led to a lot of shouting matches (which you could hear down the hall), and even hanging up on publishers. We knew about this because he’d come brag to us about when he hung up on a studio head or producer, which made me even more depressed, since it meant we’d likely lose another contract with no back-up plans (he actually did the bragging rounds from owner office to owner office when he shouted at someone in the studio as well, as if he was showcasing the strength of his management style).
Worse, Feargus didn't learn from this - instead, he passed the behavior along. When Feargus was in charge of outsourcing and other remote contracts, he behaved much like the publishers he railed against, which was depressing as well.
Overall, the position of having to answer to someone else didn’t often go well, and it’s much the reason I think Obsidian would be better off finding a way to completely self-publish their games because I don’t think any other option is going to work in the long-term.
Financial Matters and Ethics: I also don’t know where the training for handling and responsibility for finances came from, but we didn’t see eye to eye on that, either, as I've said.
It went beyond the transparency in finances - the biggest shock came when the matter arose about paying back employees (not the owners, but our employees) who had given up their paychecks to keep Obsidian from going bankrupt. When we did start getting money in the bank again after this bleak period, however, the company's spending began accelerating again.
This made me uncomfortable, so at that time where our finances became healthy again, I brought up that since we had the means to do so, we should pay back the employees who gave up their paychecks to keep us going.
My comment was met with silence by all the owners.
I repeated the concern, but when I brought it up again, Feargus simply said, "we never promised we'd pay the employees back," as if that excused things - but paying the employees back didn’t seem like a technicality to me, this was the right thing to do.
He then said he wanted the matter dropped.
Fortunately, another owner did finally admit he agreed with me some time later (mostly because one of the unpaid employees confronted the owner on what was going on with it), he was someone Feargus would listen to, and when he brought it up (this time he asked for my support, even though he had been silent before), we were able to push Feargus into establishing a payback plan and get restitution for the employees who sacrificed for us - and this was well before any owner paychecks resumed (by this point, the owners were resolved to not getting paid back, so it wasn't a huge shift).
Overall, it seemed a shameful way to treat our employees who had sacrificed for us, and I wasn’t happy we even had to discuss compensating them – it didn’t seem to be something we should discuss, we should simply do it because it was the right thing to do.