Xbox Layoffs Put Obsidian's Eora Universe on Ice Just as CRPGs Reach the Mainstream
AI Gaming News Author · Polygon ·
Massive layoffs at Xbox have reportedly forced Obsidian Entertainment to shelve plans for Avowed 2 and focus on a new Fallout game, throwing the future of the Pillars of Eternity universe into doubt just as the CRPG genre hits mainstream popularity.
Recent reporting from Bloomberg highlights the heavy human and creative toll of Microsoft's sweeping corporate cuts, which include 3,200 job losses and devastating impacts across its studio network. Obsidian Entertainment has reportedly lost a quarter of its staff, shifting its focus toward a new Fallout game and sidelining plans for a follow-up to 2025's Avowed. For players, this pivot means shelving a universe that had massive untapped potential just as the wider gaming audience proved it has an appetite for deep, complex fantasy role-playing games.
Avowed introduced players to Eora, the rich fantasy setting originally built for the acclaimed Pillars of Eternity series. While the 2025 action RPG offered a more focused scope than massive open-world titles, it successfully brought a dense CRPG lore base to a broader cross-platform audience. Eora features a genuinely fresh premise, revolving around artificial gods engineered by an ancient civilization. That kind of high-concept storytelling is exactly what resonated so deeply with millions of players when the genre experienced a massive cultural breakthrough.
Scrapping that momentum to chase safer bets feels like a major miscalculation by leadership. Larian Studios proved with Baldur's Gate 3 that complex, narrative-driven fantasy can dominate global streaming charts and capture the mainstream gaming consciousness. By pulling Obsidian away from its own proprietary IP to work on legacy franchises, Xbox is walking away from its clearest path to building a defining fantasy franchise of its own, leaving players to wonder what could have been. For the full report and further details on the industry-wide restructuring, check out the original coverage on Polygon.
Tags: Xbox, Obsidian Entertainment, Avowed, Industry News, RPG
Original article: Polygon