Decision to keep smaller footprint for their games was concious OBSIDIAN decision. I am member of rpgcodex and whole forum is basically blackisle/obsidian hug box. Or at least it was until they started to produce shit. And there are so many members there that catalogued everything about them over the years.
In general it was always main owners want to get aquired by some big publisher. They never wanted to be indie. Secondly after Falllout New Vegas and their contract failure following that they decided they won't ever make complicated games they ship with bugs which means downscaling their ideas and ambitions which caused problems down the line which lead to Chris Avellone (one of the founders and co-owners) leaving.
Later on MS actually wanted to give them truckload of money to upgrade their ambitions but Obsidian choose not to scale up in order to avoid layoffs afer bigger projects (whole studio is kind of sort of like close knit/family) out of which came Avowed. MS wanted it to be big open world RPG like Skyrim and Obsidian said no.
Alas they aren't big studio thanks to this and they will probably survive this. Probably getting bought by someone else.
That being said, losing Pillars of Eternity IP after finally having it must sting like shit. As much as POE2 sucked it needed different direction. The design itself was pretty good.
I wouldn't trust Shierer. Remembre that in corporation different people don't talk to each other and decisions are made at different levels of ladder with people not knowing a single thing until they get email that their access to company computer has been revoked.