According to website Kotaku a deal is '90%' done and it's now a matter of, 'when, not if.' If that's true Microsoft already has a media event planned for November, which seems a likely time to announce the team-up. The company is now working on a new RPG that still has no release date.
Despite the apparent inevitability of the deal the two companies have a storied history and when Microsoft cancelled Xbox exclusive role-playing game Stormlands in 2012 Obsidian nearly went bust.
One compelling argument for the sale is that being owned by a company with deep pockets will offer Obsidian stability and resources the likes of which it has never had before.
When questioned for comment, a Microsoft spokesperson said, "We do not comment on rumors or speculation".
"Unfortunately, we don't comment on rumors or speculation other than to say that the Rumors album by Fleetwood Mac still holds up", said an Obsidian spokesperson.
Microsoft recently bolstered its first-party offerings with the acquisition of five new studios, including "State of Decay" developer Undead Labs, "Forza Horizon" developer Playground Games, "We Happy Few" studio Compulsion Games, "Hellblade: Senua's Sacrifice" studio Ninja Theory, and brand-new studio The Initiative. A series of cancelled projects reportedly led to major financial troubles in 2012.
The Xbox department is under different leadership now, however, with Phil Spencer taking the top role in early 2014.