Obsidian Prioritizes New Fallout Game Over Avowed 2
Obsidian Entertainment has shifted its development focus significantly. The studio, which recently cut roughly 25% of its workforce, is now concentrating on a new Fallout game led by Josh Sawyer. The move comes at the direct expense of other projects, most notably canceling Avowed 2.

According to reporting from Bloomberg, Sawyer had originally been developing a separate game that was structurally and thematically similar to the Fallout universe. That foundation made him a natural fit for leading the new Fallout installment, especially given his acclaimed work on Fallout: New Vegas.

Why Avowed 2 Got Shelved

The decision to cancel Avowed 2 stems directly from the original Avowed‘s lackluster commercial performance, according to sources familiar with the decision. Obsidian had hoped to rapidly develop the sequel by building on existing game technology, but the weak returns of the first game killed that momentum.

Beyond Avowed 2, several other unannounced projects have also been halted. This reflects Xbox’s broader strategy to concentrate resources on its most successful franchises. The recent Xbox reset, which included widespread layoffs, triggered this strategic redirection across multiple studios.

A Small Lifeline for Avowed

There’s a catch. A small team will continue background work on Avowed 2 behind the scenes, according to Bloomberg. The goal is to keep the franchise ready for a potential revival down the road, should circumstances change. It’s a modest hedge, but it keeps the door cracked open.

What’s Still Coming From Obsidian

The studio isn’t entirely pausing everything else. Obsidian confirms ongoing work on:

  • DLC for The Outer Worlds 2
  • Live-service content for Grounded 2

The Fallout project represents Obsidian’s biggest new bet, though, and it’ll dominate the studio’s attention going forward.

What We Still Don’t Know

Obsidian and Xbox have kept specifics close to the vest. The new Fallout game’s official title, release window, and platforms remain unconfirmed. Development is still in early stages, and any meaningful details are likely months away from an official reveal.

The return of Sawyer to the Fallout franchise does signal serious intent, though. His track record with New Vegas suggests this could be something special. For now, the gaming community waits for official announcements.

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