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Windows Central
Windows Central
Technology
Brendan Lowry

One of Microsoft's biggest Xbox studios is forging a new path after development struggles, missing profit targets — "What are we learning?"

An official screenshot for The Outer Worlds 2.

One of the most prolific game development studios under the wing of Microsoft's Xbox gaming division is Obsidian Entertainment, the storied team best known for creating beloved hits like Star Wars Knights of the Old Republic 2: The Sith Lords, Fallout: New Vegas, and Pillars of Eternity. More recently — last year, in particular — the developer released the Skyrim-inspired Avowed and a pair of sequels across Xbox, PC, and Xbox Game Pass, including the survival game Grounded 2 and the sci-fi RPG The Outer Worlds 2.

According to a new Bloomberg interview with CEO Feargus Urquhart and others at Obsidian, Grounded 2 was a major success, but both Avowed and The Outer Worlds 2 failed to meet Microsoft's lofty performance expectations. This, he said, has driven the studio to "think a lot about how much we put into the games, how much we spend on them, how long they take."

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