Obsidian Entertainment is reportedly canceling the development of Avowed 2 to shift its resources toward a new Fallout role-playing game.
This pivot represents a significant strategic shift for the studio, which operates under Xbox and Bethesda. The move comes as the company attempts to capitalize on the enduring popularity of the Fallout franchise while navigating a period of corporate instability.
The project is reportedly led by Josh Sawyer, the lead designer of Fallout: New Vegas. Sawyer is returning to the series that defined much of the studio's early critical success. This creative redirection follows a series of layoffs and a corporate reset within the Xbox organization, which prompted the studio to re-evaluate its current project pipeline.
Industry reports indicate that the decision to shelve the Avowed sequel was a direct result of these organizational changes. By pivoting to Fallout, Obsidian is moving back into a known intellectual property with a massive global following. This strategy may be intended to ensure a more predictable commercial outcome following the recent workforce reductions.
The move is particularly notable given the timeline of the franchise's mainline entries. The last mainline Fallout game, Fallout 4, was released in 2015 [1]. A new entry developed by the team behind New Vegas could potentially bridge the gap for fans of the series' deeper role-playing mechanics.
Obsidian has not officially confirmed the cancellation of Avowed 2 or the start of a new Fallout project. However, the shift in resources suggests a prioritized focus on the post-apocalyptic setting over the studio's original fantasy IP.
“Obsidian is reportedly canceling Avowed 2 and shifting resources to develop a new Fallout RPG”
This shift signals a move toward lower-risk, high-reward intellectual properties at Xbox. By abandoning an original sequel in favor of a legacy franchise like Fallout, Obsidian is prioritizing established brand loyalty over new IP development. This is a common pattern following corporate layoffs, where studios lean on proven hits to stabilize revenue and justify resource allocation to parent companies.
