At X018, Matt Booty, Head of Microsoft Studios, revealed that InXile Entertainment and Obsidian Entertainment have been acquired by Microsoft Studios. Both of these studios will retain their creative independence while working on games backed by the resources at Microsoft.

Obsidian Entertainment has made games like Knights of the Old Republic II, Fallout: New Vegas and Pillars of Eternity, while InXile Entertainment has made games like Wasteland 2.

Obsidian Entertainment joining Microsoft Studios has been rumored for some time, while InXile Entertainment is a complete surprise.

Here’s a message from Obsidian Entertainment on being acquired by Microsoft Studios: 

A note from all of us here at Obsidian on becoming a part of the Microsoft family.

InXile Entertainment also left a message about why they’ve joined Microsoft Studios: 

Both of these studios appear to have been under financial strain, so it’s great to see them get this kind of backing while still being able to make games that they want to make. InXile Entertainment is still working on Wasteland 3, while the status of Obsidian Entertainment’s current projects is unknown.

Earlier this year at E3 2018, Phil Spencer announced that the Microsoft Studios family was growing with five new studios. With these two new additions, that’s seven studios in a single year. It’ll be interesting to see what the future brings.