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Inside Xbox, a Game Studio Is Trying to Reinvent Itself
Posted
February 7, 2026
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February 7, 2026
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1:10Now PlayingMicrosoft’s Obsidian Entertainment is searching for ways to make games more quickly and on smaller budgets.
Obsidian Entertainment's head Feargus Urquhart meets with his management team weekly to discuss the studio's future, including recent games that failed to meet sales forecasts set by parent company Microsoft Corp.
Urquhart says the company is trying to navigate a shaky games market and turmoil in Microsoft's Xbox game division, which has been buckling under pressure from ambitious profitability goals.
Obsidian plans to work on projects big and small, space out releases, and reuse technology to shorten development times, with Urquhart saying "we don't need to change everything every time" and aiming to cut down development timelines to three or four years per title.
#xbox #gaming #microsoft
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