A lot of people have a fondness for Obsidian for their work on Knights of the Old Republic II and Fallout: New Vegas, while the Pillars of Eternity games have seen a successful and critically acclaimed return to a cRPG style in the vein of Baldur's Gate.
Neither Microsoft nor Obsidian are commenting about the potential acquisition at this time.
According to a report published less than an hour ago by Kotaku, Microsoft is close to buying Obsidian Entertainment. A source speaking to the video-game website stated that the deal was "90%" done. The studio was saved from closure, however, by the success of its crowdfunded project "Pillars of Eternity" in 2015, which raised almost $4 million. "Unfortunately, we don't comment on rumors or speculation other than to say that the Rumors album by Fleetwood Mac still holds up".
In late 2017, Obsidian announced that it was developing a new RPG that would be published by Private Division, a label of 2K Games created to fund mid-sized games.
In case you're wondering, this would be a major acquisition by Microsoft and possibly the company's biggest acquisition since they announced they had acquired Ninja Theory. It seems that Obsidian Entertainment might make that six soon. Tense disagreements between the two companies led Microsoft to cancel the game in 2012, and to some involved it was hard to imagine the pair working together again. Microsoft executive vice president of gaming and head of Xbox Phil Spencer told CNET in August the company isn't done beefing up its portfolio just yet.