HomeMobileObsidian, and Why Xbox’s Acquisition Strategy is Staying Out of the Way

Obsidian, and Why Xbox’s Acquisition Strategy is Staying Out of the Way


When Feargus Urquhart walked right into a 2018 pitch assembly with then-Xbox senior director of enterprise growth Noah Musler, he thought he was pitching Avowed. However what he was actually pitching was the whole thing of Obsidian Leisure.

They have been having breakfast at that 12 months’s E3, simply after Xbox introduced it was buying Undead Labs, Playground Video games, Ninja Idea, and Compulsion Video games, in addition to establishing The Initiative. On the time, Urquhart wasn’t even conscious of the industry-shaking information. He was, as he tells me, “plugged into his personal stuff,” centered on making Avowed look as interesting as attainable to individuals like Musler who may doubtlessly assist Obsidian get it out the door in a couple of years. He made the pitch for Avowed. Musler responded by suggesting Urquhart repeat his pitch once more…this time in an even bigger room, with extra Xbox people listening in.

It wasn’t till the center of that week that Musler referred to as Urquhart again and informed him that what he had actually bought Xbox on was buying the whole thing of Obsidian, the studio he had been on the head of since 2003.

Obsidian was born from the ashes of Black Isle Studios, which gained fame by video games like Icewind Dale, Baldur’s Gate, the primary two Fallout titles, and Planetscape: Torment. Black Isle’s 2003 closure got here on account of monetary hassle at dad or mum firm Interaction. Obsidian was based quickly after, and went on to take pleasure in 15 years of unbiased success with video games like Pillars of Eternity, Neverwinter Nights, South Park: The Stick of Fact, Star Wars: Knights of the Previous Republic 2, and Fallout: New Vegas. With a historical past like that and no monetary want for a dad or mum, why get acquired in any respect?

In line with Urquhart, acquisition by an enormous like Microsoft was a leap of religion. However what finally bought him on the concept have been two issues. The primary was the substance of what Xbox was pitching: it needed to let its acquired studios “be who they’re” and retain their inventive freedom and studio tradition, largely unbothered by Xbox mandates.

Inventive independence following acquisition can sound like a tall, unbelievable order, although. Why would anybody belief that an unlimited company dad or mum like Microsoft would adhere to that one, two, 5, or ten years down the street, particularly in an {industry} the place smaller firms are wolfed up each day? However Urquhart says the second element that satisfied him was the individuals pitching him: he already knew Matt Booty properly, and Musler too – sufficient to think about their guarantees. After which there was Phil Spencer.

[Phil Spencer’s] repute was simply somebody who was genuine and somebody who does not BS and loves video games.


“I did not know Phil Spencer properly at the moment, I in all probability solely talked to him a few times as much as that time,” he says. “However what’s so attention-grabbing with Phil is he’s this- I do not know. I do not need to say ‘persona’ ultimately, as a result of he’s Phil Spencer and since he runs all Microsoft video games. However now understanding him, and even what I knew [about] him again then, his repute was simply somebody who was genuine and somebody who does not BS and loves video games. And that was the belief in that.”

The three of them collectively satisfied Urquhart that he could be bringing Obsidian right into a “new Microsoft” of kinds: one price placing religion in.

The ‘New Microsoft’

Urquhart’s exterior impressions have been astute: he was getting a firsthand have a look at a change occurring inside Xbox that, per Mary McGuane, had been occurring for a lot, for much longer than the general public has been aware about.

McGuane is at the moment the studio basic supervisor at Xbox Sport Studios for Obsidian, Double Superb, and inXile, however she’s held quite a few roles in her over 20 years at Microsoft. That have has allowed her to look at this transformation happen firsthand. In 2018, she was serving because the chief of workers for Xbox Sport Studios, giving her a entrance row seat to its acquisition drive. As she tells it, Xbox’s shift began not in 2018, however means again in 2014, with its acquisition of Mojang. That effort was steered by Matt Booty, who pushed for a really totally different integration strategy.

“Earlier than [Mojang], it was: you’re part of Microsoft,” McGuane says. “Someday you’re [part] of this studio, the following day you’re absolutely Microsoft. And it had…various success, I’ll say. So with Mojang, there was an strategy taken that we prefer to name minimal integration, the place we regarded on the stuff we actually wanted to have absolutely built-in: and that’s like IT stuff and safety coverage, that type of stuff. However then we actually tried to create stability in these studios to not have the acquisition be one thing the place the entire studio misplaced focus, the place the studio was now attempting to determine this factor referred to as Microsoft.”

One have a look at Minecraft right now is proof of how properly that went for Xbox. McGuane says that it was Minecraft’s success that allowed individuals like Booty and Spencer to advocate for that strategy extensively, constructing extra belief with every success. And so, the gaming big has taken the identical tactic time and again with its acquisitions since, encouraging them to concentrate on making video games with inventive independence and utilizing Microsoft’s monumental sources. Studio management is inspired to collaborate with different studio heads and Microsoft leads, evaluating notes on video games, manufacturing, individuals, and tradition. It does make Xbox extra centered on established groups with constant inside cultures, stable observe information of video games and IP, and veteran management. In spite of everything, giving that a lot inventive freedom to a studio that doesn’t know what to do with it will finally be hurtful to the technique.

Independence doesn’t imply isolation, although. McGuane says that in Obsidian’s case, for example, she speaks with somebody on the studio each few days, and there are connection factors all all through all of the Xbox-owned studios. It’s not, she says, that they shut the door and Xbox knocks yearly to gather what it’s owed.

In return, Xbox will get video games, clearly. However it’s not simply after blockbusters. By relieving the stress of getting to scramble for publishing deal after publishing deal, McGuane says that studios like Obsidian can, in the event that they so select, pursue smaller initiatives alongside their bigger endeavors. Grounded and Pentiment are prime examples of this, the place Xbox’s security internet helped the developer juggle a number of balls directly. Grounded’s early entry success was considerably bolstered by Sport Move and Xbox advertising and marketing, which allowed Obsidian extra time and vitality for Pentiment. And each video games will assist The Outer Wilds 2 and Avowed down the road. For Xbox, all of this contributes to filling up Sport Move.

Although Obsidian has been part of Xbox’s home for practically 4 years, its mission line-up internally nonetheless seems to be fairly much like the way it did when it was first acquired. However that’s okay. McGuane tells me Xbox is enjoying the lengthy recreation with not simply Obsidian, however all its acquisitions. She says it’s not all for churning out an enormous recreation per studio after which tossing them by the wayside. Slightly, it’s all half of a bigger image, constructing a sustainable inventive infrastructure that can nonetheless be making new issues years from now, constructed from concepts that haven’t even been dreamt up but.

“My hope [five years from now] could be that [our studios] really feel as supported as they do right now, that the [creatives are] nonetheless capable of make the video games that they love,” McGuane says. “The studio workers are stoked to be making these video games, getting them into the palms of the participant – and that it is supporting all the methods that we now have 5 years from now, which I believe will probably be a number of the methods that we now have right now. However for me, my hope is that the studio at all times feels the identical degree of assist and the identical inventive freedom.”

Obsidian, However Extra

Which brings us again to Urquhart, who has now had 4 years with Xbox to see if the corporate would ship on its massive guarantees of freedom. Whereas it appears unbelievable that hardly something has modified at Obsidian past the assist networks McGuane describes, Urquhart insists that for essentially the most half, Obsidian continues to be Obsidian.

There are some modifications, in fact. It’s gotten a bit of greater since (from round 170 to 240 workers), and COVID-19 shook up the day-to-day because it did for each studio. However, he says, Obsidian has been largely unmoved; right down to tiny particulars, like its 401k, medical insurance coverage, and cost system. In truth, the most important shift Urquhart can level to is, he says, a boring one: he needed to be taught a bit extra about how the funds of such a big firm labored.

What’s extra, Urquhart has noticed a large enchancment in a single explicit specter from his personal previous relationship with Xbox: it’s dropped its previous tendency to mandate builders work on sure sorts of expertise it’s attempting to push. Like, say, the Kinect.

Pentiment – Xbox and Bethesda Video games Showcase 2022

“The Kinect is an instance of one thing that grew to become a requirement, [even for us],” he says. “We have been making a recreation for Microsoft again in 2011 [likely its cancelled RPG, Stormlands], and that’s when the Kinect was extremely essential. And there have been a whole lot of issues the place they needed the Kinect to be extra– the Kinect was cool, however how a lot of it actually wanted to be a recreation interface? That was one of many actual questions. So there was that feeling of the pressured nature of issues. I hate to even say this, however I’m going to simply say, [it was] one of many issues that was on the lists of stuff that we needed to [have].

“So we have been making a task enjoying recreation and somebody had this concept, and also you suppose it was an thought that will’ve simply been nicked off on the primary record. The concept was, you’re enjoying the sport, and also you’re not doing so properly in well being, however your pal comes and provides you a again rub and that truly provides you extra well being. We laughed uncomfortably… after which it didn’t come off the record.”

After all, Xbox continues to be pushing new expertise alongside Microsoft, the obvious of that are its cloud endeavors. However these efforts are actually extra options, and usually are coupled with important assist from Xbox itself, to implement the place and the way builders discover a match. Urquhart personally is happy in regards to the prospects for the expertise, particularly the methods wherein cell cloud gaming would possibly enable Obsidian video games to achieve individuals who can’t afford a console or high-end PC. After which there’s the assist Obsidian will get from Xbox’s person analysis group, which helps studios higher perceive how persons are enjoying their video games and the way they’ll higher attain these gamers sooner or later.

With Pentiment and Grounded’s full releases imminent, Obsidian is popping its consideration to The Outer Worlds 2 and Avowed – but in addition to its longer-term future. There’s no clear set of bullet factors for what makes an Obsidian recreation, Urquhart says, regardless of the studio’s bent towards RPGs and love of narrative. However he’s particularly excited in regards to the basis Pentiment and Grounded laid for Obsidian to constantly juggle each massive and small initiatives concurrently. Urquhart’s not going to set down a mandate that the studio wants a selected quantity or kind of video games within the works directly, however he does like that his most senior colleagues can take a break from greater video games and stretch their inventive muscle mass in the event that they need to. Engaged on big RPGs day in and day trip will be tiresome, in any case – and Obsidian’s largest groups, he says, continuously be taught new issues from their smaller, extra adventurous initiatives.

Each time, we have to go, ‘How can we do it higher? How can we put one thing extra on the earth?’


Although missing a selected system for the long run, Urquhart says Obsidian’s plans considerably boil right down to answering the query: what do RPG gamers need? And the way can Obsidian push the medium ahead?

“Each time, we have to go, ‘How can we do it higher? How can we put one thing extra on the earth? How can we give [players] that emotional response? That factor the place they misplaced a weekend to one thing we created?’… It’s simply at all times excited about find out how to make that RPG expertise extra for somebody, and never simply extra, however really one thing that they admire greater than what they performed final time.”

That Xbox doesn’t simply assist this strategy, however actively encourages it, appears to show that the acquisition experiment is working for each events. With Pentiment and Grounded 1.0 imminent, we’re now poised to see what fruit such a collaboration can produce.

Rebekah Valentine is a information reporter for IGN. You will discover her on Twitter @duckvalentine.





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