Obsidian Entertainment - XBLA Title "On Hold"

Via Joystiq:

Obsidian Entertainment announced last year that it was working on "an original IP XBLA game," but times have changed. Targeting a launch for the first quarter of 2012, Obsidian CEO Feargus Urquhart said at the time it would be an "action RPG that's focused on fun."

Checking in with Urguhart about the project, we were told, "That project is currently on hold; we are looking at where we might want to take it."

More information.

Is Obsidian dying? Can't they become like Respawn - EA's money but still a certain degree of independence?

Originally Posted by Edgarstrong
Is Obsidian dying? Can't they become like Respawn - EA's money but still a certain degree of independence?

Lack of money and spread to thin. Its always a problem for smaller studios. As much as people whine about publishers they do keep you funded as long as you make profitable games. Goes to show publishers are still needed despite all the hatred from the consumer.

If I recall there spending 1 million a month just stay open.