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In the year 2003, following long-standing disagreements with Black Isle Studios (Icewind Dale, Fallout, Planescape: Torment), its parent company Interplay laid off most of its staff. Most of the former Black Isle developers, including its founder Feargus Urquhart and writer/designer Chris Avellone, moved on to found a new game development company: Obsidian Entertainment.

Since then, Obsidian has formed strangely fond relations with fellow RPG company BioWare, to the point that its first two titles were sequels to BioWare games using modified versions of the originals' Aurora engine. This happened because by that point BioWare switched from producing licensed games based on established franchises (Neverwinter Nights and Knights of the Old Republic) to their own original universes, and in case of KOTOR, recommended Obsidian to Lucas Arts as an alternate developer for the sequel.

So far, Obsidian's games have been a mixed bag: deep and thought-provoking storylines on the level of the former Black Isle titles... and very buggy programming, usually requiring several patches to rectify(Or in some cases, fan-created mods.) though most games are fairly bugless with the final patch installed. This earned them the nickname "Bugsidian".

One thing to note about Obsidian is their business model. Obsidian is hired by publishers for fixed amounts of money, rather than being an internal studio or making a game then looking for a publisher to publish it. This results in Obsidian not bearing the finical cost or gain of the failure/success of any game they make beyond reputation or future deals. This mercenary model is responsible for their buggy reputation, as the release schedule or budget is not as negotiable once the deal is made. This came back to bite them in the ass with Fallout: New Vegas; their contract with Bethesda Softworks specified a tiered bonus based upon the game's Metacritic score. They missed the bonus by one point, which a more polished game almost certainly would have picked up.

Games released by Obsidian:

Currently in production

List of tropes persistent in Obsidian RPGs:

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