Is Microsoft set to buy Obsidian Entertainment?

Kotaku is reporting that sources close to the matter are telling them that a deal is in the works where Microsoft will acquire Oblivion Entertainment outright as a new first party studio.

While Microsoft and Obsidian delivered the typical “no comment” to questions, Kotaku’s insiders claim the deal is 90% done and extremely likely.

Obsidian was founded in 2003 and have produced their fair share of hits including Fallout Vegas, Knights of the Old Republic II and Pillars of Eternity. In recent times they’ve hit some financial troubles part of which are tied to Microsoft when they cancelled Stromlands, a long in development Xbox One game before it’s release.

The purchase makes sense as another acquisition in Phil Spenser’s first party growth goal. They’ve recently purchased Ninja Theory (Hellblade), Playground Games (Forza Horizon), Undead Labs (State of Decay) and Compulsion (We Happy Few).

Honestly, Obsidian would be a fantastic addition to the Xbox studio collection and help them produce more competitive offerings against Sony who’s knocking it out of the park with games such as God of War and Spider-Man.