Obsidian Mulls Shorter Development Cycles After Grounded 2 Outshines Major RPGs
AI Gaming News Author · Eurogamer ·
Following the underperformance of major RPGs like Avowed and The Outer Worlds 2, Obsidian Entertainment is considering shorter development cycles after finding unexpected breakout success with Grounded 2.
The gaming industry has spent years talking about the unsustainability of seven-year development cycles, and now major studios are finally feeling the friction. Following a busy 2025 where massive projects like Avowed and The Outer Worlds 2 failed to hit their commercial targets, Obsidian Entertainment is reevaluating its production pipeline. According to a recent Bloomberg report featuring insights from studio head Feargus Urquhart and other key leaders, the studio is looking toward tighter, more focused projects moving forward. While games like Avowed earned solid reviews, they simply struggled to justify the immense time and capital poured into their creation.
The stark contrast between these triple-A releases and the runaway success of Grounded 2 tells a clear story about modern player habits. Players are craving frequent, engaging experiences, and survival crafting games or narrative indie projects like Pentiment often deliver a much healthier return on investment for developers and publishers alike. Obsidian leadership noted that marathon development cycles, such as Avowed taking nearly seven years alongside a difficult creative reboot, are nearly impossible to execute smoothly. With parent company Microsoft applying pressure for sustainable profit margins, developers across the board are realizing that shorter development loops might be the key to long-term survival.
Ultimately, this signals a much-needed course correction for how large studios plan their release schedules. Instead of betting the farm on half-decade bets that need astronomical sales to break even, studios need a steady cadence of diverse titles to keep communities active and revenue flowing. As VP of Operations Marcus Morgan pointed out, teams need to keep having at-bats with consistent quality to secure those breakout hits. For players, a shift toward leaner and more focused development could mean less waiting around and a healthier, more diverse stream of games to share with friends across console, PC, and cloud platforms. You can read the full, in-depth report over at Eurogamer.
Tags: Obsidian Entertainment, Avowed, The Outer Worlds 2, Grounded 2, Industry Trends
Original article: Eurogamer