- Obsidian Entertainment has canceled one Avowed sequel and is now reportedly developing a new one Fallout game
- The game is controlled by Fallout: New Vegas lead designer and project director Joshua Sawyer
- This comes as part of Microsoft’s big Xbox “reset”
Obsidian Entertainment is reportedly working on a new one Fallout game by scrapping plans for one Avowed successor in the midst of Xbox’s restructuring strategy.
This is according to Bloomberg, which reports that Avowed sequel and other unannounced projects were the studio’s priority, but will now focus on a new one Fallout game controlled by Fallout: New Vegas lead designer and project director Joshua Sawyer, in collaboration with Bethesda.
Sawyer worked on another role-playing game (RPG) similar to Falloutbut it is unclear which one.
While Avowed 2 has been cancelled, a small team will continue to work on the game if the project is revived in the future; for now, Fallout is the new priority.
The report comes as part of Microsoft’s big Xbox “reset,” which recently saw thousands of layoffs, including 1,600 immediate cuts. It is said so Avowed 2 was to be announced within the next year, but Xbox CEO Asha Sharma didn’t see it fitting into the company’s new strategy.
Bloomberg said those layoffs included a quarter of Obsidian, and GameFile reported that a WARN notice in California indicated it was 52 workers in total, including 43 in Obsidian’s California offices and nine remote workers in the state.
Obsidian, which was acquired by Microsoft in 2018, released three games in 2025, including Avowed, The Outer Worlds 2and Earth 2. Bloomberg confirmed that the studio will continue to develop content for the latter two titles.
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