In a significant development, Obsidian Entertainment has reportedly canceled its planned sequel to the 2025 RPG, Avowed, to concentrate on a new Fallout game. This move is part of Xbox's broader initiative to focus on its most prominent franchises, leading to a shift in Obsidian's development pipeline.

The new Fallout game will be led by studio design director Josh Sawyer, who has experience in the Fallout universe from working on the well-received Fallout: New Vegas in 2010. Although Avowed 2 is no longer in active development, some employees will continue to work on it, potentially paving the way for a revival in the future.

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  • Obsidian's development pipeline has been adjusted to prioritize the new Fallout game, as part of Xbox's restructuring efforts.
  • The Avowed sequel, which was reportedly progressing well, has been canceled due to not aligning with Xbox's new strategy.
  • Despite the pivot, Obsidian will continue working on Grounded 2 and DLC for The Outer Worlds 2, showcasing the studio's commitment to its existing projects.
  • The layoffs at Xbox have affected roughly 25% of Obsidian's staff, including long-time art director Daniel Alpert.

For the latest on the gaming industry, including Xbox's ongoing restructuring, Source: Game Informer