Following layoffs, Obsidian is reportedly prioritising development of a new Fallout game over Avowed 2 and several other projects.
Developer Obsidian Entertainment is reportedly shelving a sequel to its fantasy RPG Avowed as the studio shifts its priorities towards developing the next Fallout game, according to Bloomberg (courtesy of IGN).
The studio is reportedly working with publisher Bethesda Softworks on the project. While Fallout has primarily been developed by Bethesda Game Studios over the past two decades, the studio currently has its hands busy working on the highly anticipated The Elder Scrolls VI.
Still, Obsidian's involvement in the next Fallout project appears promising. The studio was notably behind Fallout: New Vegas, a fan-favourite entry in the long-running franchise. Josh Sawyer, who served as lead designer and project director on New Vegas, will reportedly lead the new project.
Avowed 2 shelved after Obsidian faced layoffs
However, Obsidian's renewed focus on Fallout means other projects have been sidelined indefinitely, with Avowed 2 and several other unannounced titles reportedly being put on hold.
As reported by Bloomberg, Avowed 2 is reportedly being maintained by a skeleton crew to keep the project alive, with Obsidian hoping to resume full development further down the line–a glimmer of hope for fans awaiting the sequel.
This shift in priorities comes amid Xbox's unprecedented structural overhaul. The Microsoft gaming division, now led by CEO Asha Sharma, has laid off around 3,200 employees and parted ways with several first-party studios, including Undead Labs and Ninja Theory.
While Obsidian remains under Xbox's umbrella, it has not escaped the restructuring. Bloomberg reports that around a quarter of the studio's workforce has been laid off. With a reduced headcount, Obsidian appears to have narrowed its focus, prioritising Fallout above its other projects for the foreseeable future.
The long-running Fallout franchise last received a new release in 2020 with the free-to-play mobile game Fallout Shelter Online, although it was a relatively small-scale spin-off. Its last mainline instalment, Fallout 4, launched in 2015, and it may still be several years before the next numbered entry arrives.
