Fallout New Vegas developer Obsidian Entertainment is reportedly “safe” from closure. As Xbox preps yet another wave of layoffs, the historic RPG studio is reportedly not facing the chopping block.

In a horrendous period for the games industry, including PlayStation’s push to eliminate physical discs, Xbox is reportedly prepping major layoffs similar to the same time last year. Compulsion Games, the studio behind South of Midnight, as well as Undead Labs, Double Fine, and Ninja Theory are reportedly all up for closure.

In a report by The Game Business, it was claimed that Obsidian Entertainment is also facing closure following poor sales of The Outer Worlds 2 and Avowed. At the time of writing, Avowed 2 is currently in production with a new director at the helm.

However, a follow-up report by Bloomberg reporter Jason Schreier, who has the industry’s best track record, claims that Obsidian Entertainment does not face closure. Additionally, while other studios are reportedly in negotiations for independence instead of a full closure, Obsidian will stay under the Xbox umbrella.

“Despite a report this morning, I can confirm that Obsidian is *not* in negotiations to avoid shutting down. Plenty of details are still up in the air surrounding the layoffs (picture will be clear on Monday) but Xbox is keeping Obsidian, according to people familiar with the situation,” Schreier told followers.

As Xbox seeks to make faster sequels to its flagship IPs, including The Elder Scrolls and Fallout, removing Obsidian Entertainment from the table would be a dismal move. While Obsidian has not made a Fallout title since the aforementioned Fallout New Vegas, the studio is best equipped to make spin-off titles in the universe.

Furthermore, fans have been asking for Obsidian to be given the keys to the Fallout universe once again with New Vegas lead Josh Sawyer still working at the studio. Additionally, with Obsidian’s rather fast history of development, it seems like an easy win-win for Xbox’s future plans.