Obsidian Drops Avowed Sequel for New Fallout Game
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- Obsidian scrapped a planned sequel to Avowed so the studio can pivot to developing a new Fallout game, per Game Informer's report.
- Microsoft's Xbox division is reassigning Obsidian to the Fallout project while separate layoffs hit both Obsidian and id Software, per TechPowerUp, with additional unannounced projects reportedly cut.
- Bloomberg's reporting confirms Xbox is actively shifting Obsidian Studio — acquired via Microsoft's 2021 Bethesda purchase — onto the Fallout franchise rather than internal sequels.
Why it matters: Obsidian's pivot from a mid-tier fantasy RPG to a flagship franchise, paired with layoffs at two Bethesda-owned studios, shows Microsoft redirecting Xbox development muscle toward its biggest IPs while shelving unannounced projects, with the Avowed player base left without a continuation.
