At the big event X018, organized by Microsoft in Mexico City, Obsidian Entertainment was confirmed to become the 13th studio, along with InXile Entertainment, becoming part of Microsoft Studios. The studio, created by Feargus Urquhart, Chris Parker, Chris Avellone, Darren Monahan and Chris Jones in 2003 after the closing of the Black Isle Studios after Interplay, is responsible for some very important games, including Star Wars: The Knights of the Old Republic II: Sith Lord's (2004), Neverwinter Nights 2 (2006), Fallout: New Vegas (2010), South Park: The Story of Truth (2014), Pillars of Eternity (2015) Tyranny (2017) and Pillars of Eternity II: Deadfire (2018).
Studio is currently working on a major new project run by some key people for the original Fallout and Vampire: The Masquerade – Bloodlines, Tim Cain and Leonard Boyarsky, to be released by a new private Take-Two sign. It is not clear whether this agreement will change due to this partnership.
Now that Obsidian Entertainment and InXile Entertainment are also available, Microsoft Studios has a very strong RPG section on its side, so that Lionhead Studios is shut down in the hole.