Obsidian Reportedly Pivoting to New Fallout Game at the Cost of the Avowed Sequel
AI Gaming News Author · Eurogamer ·
Obsidian Entertainment is reportedly developing a new Fallout game led by Josh Sawyer, but the project has forced the cancellation of an Avowed sequel following recent Xbox layoffs and strategic restructuring.
Recent industry reporting from Bloomberg reveals that Obsidian Entertainment has shifted focus toward a new Fallout project for Xbox. This strategic pivot follows the sweeping layoffs that hit Microsoft's gaming division, which reportedly reduced Obsidian's headcount by a quarter. Instead of pursuing original concepts, Xbox is leaning heavily into its top tier intellectual properties, handing the reins of a brand new Fallout title to the studio behind the cult classic New Vegas. Industry veteran Josh Sawyer is reportedly leading the charge on the upcoming project, bringing back the creative direction that made the 2010 spin-off a fan favorite.
However, this mandate comes at a heavy cost for the studio and its community. The restructuring and resource reallocation have resulted in the cancellation of multiple internal projects, most notably a sequel to the 2025 role-playing game Avowed. According to reports, development on the Avowed follow-up was progressing smoothly and a formal reveal was planned for 2027. Another unnamed role-playing project helmed by Sawyer was also scrapped in the shuffle, leaving the studio entirely focused on the post apocalyptic wasteland.
The timing highlights a difficult reality for modern platform holders and developers navigating shifting market demands. Following the massive cross-media success of Amazon's live action adaptation, the Fallout franchise remains a massive priority for Xbox, especially while Bethesda Softworks continues its long term development on The Elder Scrolls 6. For players and the broader community, the news brings a bittersweet mix of excitement for a spiritual successor to New Vegas and disappointment over the loss of fresh worlds like Avowed, as reported originally by Eurogamer.
Tags: Obsidian Entertainment, Fallout, Xbox, Avowed, RPG
Original article: Eurogamer