Obsidian Entertainment is reportedly shifting its focus to a new Fallout game, led by the director of the critically acclaimed Fallout: New Vegas, Josh Sawyer. However, the decision comes at the expense of a planned sequel to last year's RPG, Avowed, which has been shelved according to industry reports.
Layoffs and Project Cancellations at Obsidian
According to Bloomberg's Jason Schreier, the recent Xbox 'reset' has led to significant layoffs across Microsoft's gaming division, with Obsidian cutting approximately 25% of its workforce. As a result, the studio has binned multiple unannounced projects and reprioritized its development pipeline.
Schreier reports that Obsidian will now begin work on a new Fallout title, marking the first mainline entry since Fallout 76 released in 2018. The game will be helmed by studio design director Josh Sawyer, who previously directed Fallout: New Vegas. Sawyer had been working on a role-playing game similar in theme and structure to Fallout but not part of the franchise, which has now been redirected.
Avowed 2 Shelved
While fans of the Fallout series have reason to celebrate, the shift in priority means that plans for a sequel to Avowed, Obsidian's 2025 RPG, have been abandoned. Avowed received generally positive reviews, and some players expressed disappointment at the loss of a potential sequel.
One Reddit user commented: “Shame as I love the first one. Hope what they have gets repurposed for DLC for Avowed 1 as I’d buy it in a heartbeat.” Another wrote: “Maybe unpopular opinion but they should've started working on a new Fallout as soon Microsoft acquired them. Sucks that it took all this chaos and layoffs to get to this point.”
A third Redditor added: “No chance in hell Avowed 2 was going to take priority over a Fallout game. Might not be their preferred choice, but it sure as hell's a far safer bet for them to continue as a studio.”
Future Projects
Despite the cancellations, Obsidian will continue to develop content for The Outer Worlds 2 and Grounded 2. The studio's focus on a new Fallout game is seen as a strategic move to ensure its survival amid the broader Xbox restructuring.
One fan expressed cautious optimism: “Looking forward to a new Fallout game. I wonder if it will be on Creation Engine, I hope it is and it's great to see Josh Sawyer leading it, because I've lost a bit of faith in Obsidian but he's someone who I'm sure will do a great job.”
