The studio behind first-person VR dungeon crawler The Mage’s Tale (2017), inXile Entertainment, has been acquired by Microsoft Studios.

Microsoft also acquired Obsidian Entertainment, the studio behind Star Wars: Knights of the Old Republic II: The Sith Lords (2005), Fallout New Vegas (2010), South Park: The Stick of Truth (2014) and the Pillars of Eternity series.

Both studios will continue on autonomously developing their own games, talent, and IP.

The announcement was made via Xbox’s blog, and while inXile Entertainment isn’t exclusively a VR studio, having developed several PC and console games in The Bard’s Tale series, Microsoft says the studio “will have the support and freedom to fully realize their creative ambitions on both existing franchises and new RPG projects.”

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Microsoft Acquires 'The Mage's Tale' Studio inXile Entertainment
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“It was important for us to find studio partners who have strong creative visions, a mastery of their medium and are expert world-builders. Obsidian and inXile embody all of these qualities while also bringing expertise on the PC platform and a unique RPG focus to the table,” says Matt Booty, Corporate Vice President of Microsoft Studios.

Microsoft now counts a total of 13 development teams, which the company says are focused on providing content for new Microsoft technologies and new platforms.

The company has affirmed in the past that it has no specific plans for VR on Xbox One.

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Scott Hayden
Well before the first modern XR products hit the market, Scott recognized the potential of the technology and set out to understand and document its growth. He has been professionally reporting on the space for nearly a decade as Editor at Road to VR, authoring more than 4,000 articles on the topic. Scott brings that seasoned insight to his reporting from major industry events across the globe.
  • jumane

    Congratulations to the company for now being funded on their new programs. Even if it’s ot Vr

  • sfmike

    Not good news for VR as big profits from VR content are still a long way off so the corporate suits will get rid of VR as a first step to their only value,,,,,big profits.

    • jt3z

      VR is still a gimmick at this point. Hardware just inst there yet to make it worthwhile.

  • FriendlyCard

    Considering Microsoft has little interest in VR as it’s not a big money maker (Microsoft exists only to make money and please shareholders), this may not bode well for inXile’s VR efforts. But fingers crossed.