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Hype Drip

Microsoft Acquires Obsidian Entertainment | The Nerd Stash

Author

Eleanor Gray

Published Mar 18, 2026

In an announcement at X018 in Mexico City, Microsoft announced they have bought Obsidian Entertainment. This wraps up a busy year of growth for the company and the promise of more brilliant games for the future.

Obsidian Entertainment is known for their games Fallout: New Vegas, Pillars of Eternity I and II, Alpha Protocol, and other RPG titles. Based in Irvine, CA, they have been around since 2003 and continue to produce popular video games. In a statement the company has said:

“We are very happy to announce that we are now a part of the Microsoft family, and have a video to share with you all to talk about it.”

Microsoft has been on a shopping spree. At E3 2018 they’d announced the acquisition of four other studios: Ninja Theory (known for Hellblade and Devil May Cry), Playground Games (known for Forza Horizon), Undead Labs (known for State of Decay), and Compulsion Games (known for Contrast and We Happy Few).

Microsoft has stated:

“As part of X018, we will announce Microsoft’s intent to acquire Obsidian Entertainment. The studio was founded in 2003 in Irvine, Calif. by industry veterans from Black Isle Studios and quickly made a name for itself with the Xbox exclusive Star Wars: Knights of the Old Republic II: The Sith Lords. Over the last fifteen years, the studio has delivered genre-defining RPGs to players on both console and PC through titles including Fallout: New Vegas, South Park: The Stick of Truth, and Pillars of Eternity. As one of the industry’s premiere RPG developers, we couldn’t be more excited about the opportunity to add their expertise to Microsoft Studios, while enabling the studio to preserve its unique culture and build on its talent and vision to fully realize their creative ambitions.”

Check out the video posted by Obsidian Entertainment discussing their future with Microsoft below.