Gray clouds loomed over this summer's big game showcase: more than 16,000 game developers have lost their jobs since 2023, many of them victims of the success of companies that posted huge profits this year. One of the biggest cost-cutters has been Xbox, which cut 1,900 jobs at Activision Blizzard in January and closed four studios in May: Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Games. Tango's closure was particularly harsh, as the studio was still basking in the glory of "Hi-Fi Rush," which was a critical and commercial success by all Microsoft metrics.

For developers, the unexpected closure sent a clear message: for developers, the unexpected closure sent a clear message. Public trust in Microsoft as stewards of the studios it had spent years devouring has been shaken.

Hours after Microsoft held a spectacular showcase in June to unveil new titles "Doom," "Perfect Dark," and "Gears of War," PC Gamer sat down with Obsidian's CEO and founder, Feargus Urquhart, He premiered a new trailer for Avowed during the show, and we asked him about his views on layoffs and Xbox ownership in 2024.

"It's terrible," Urquhart said of the recent Xbox closures and layoffs. 'We had three layoffs at Obsidian [before it was acquired]. Along with the death of my parents, those were the worst days.

Obsidian was one of the earliest companies acquired during the Xbox spending surge, joining the company in 2018. The beloved RPG maker has released two games under the Xbox label ("Grounded" and "Pentiment") and is preparing to launch another. urquhart has fans worried about what could happen to Obsidian in the current Xbox climate. He is aware that there are fans who are concerned about what could happen to Obsidian in the current Xbox climate.

"All the things that have happened in the last six months, like the layoffs and the culmination of all this stuff with Tango, Arkane, and other studios, have really made people nervous and shaken them up," Urquhart said. "I think we're just trying to say, 'Hey, this is what we're working on today, and we believe in it,' and I'm not saying [Tango and Arkane] didn't believe in what they were doing, but we just put our heads down and moved forward and said, great I'm just saying we're working on the game, we're working on Avowed, we're working on Outer Worlds 2, we're working on the game, we're working on the game, we're working on the game. Perhaps not surprisingly, there are other things we are thinking about and want to do.

When asked if he still believes in Xbox as a good steward of the many studios it has acquired, Urquhart said an unqualified "Yes."

Urquhart said he was encouraged by recent discussions with other Xbox studio heads. They have "talked a lot" in group chats and in person whenever possible, he said. When the entire Xbox gathered in Los Angeles over the weekend, he said, he had dinner with about 14 other studio leaders.

"It's probably good that we're all talking like this," Urquhart said, gesturing." We're talking about the future and what we're trying to accomplish."

I said.

I put it another way: the Obsidians are not watching their backs. [no, we're not watching our backs.

"Obviously this is happening, but I always go back to a conversation I had with Matt [Booty, head of Xbox Game Studios] in July '18 when we first started talking about acquisitions." I don't feel like there is any different mandate between then and now."

If anything has changed for Urquhart, it is that there are more games competing for attention and "a little more pressure" to make better games.

"We are saddened by what has happened. But as long as I'm doing my job well, I'm not worried about tomorrow."

But Urquhart is thinking further ahead, about Obsidian after he is gone. 'Me and my partners started Obsidian. And even if we sell it, it will still matter to me. I'm shocked; in 15 years I won't be running Obsidian. But I want Obsidian to be there."

Right now, Urquhart is focused on completing the company's next big RPG, Avowed. He plans to announce a release date soon, but 2024 is a certainty.