Obsidian Entertainment has reportedly canceled development on Avowed 2, its upcoming fantasy RPG, to prioritize the creation of a new Fallout game. The shift in focus is part of a larger restructuring within Xbox's first-party studios, which has also led to layoffs at Obsidian.
According to a report from Bloomberg, Obsidian has scrapped Avowed 2 and other unannounced projects to concentrate on a new Fallout title. Josh Sawyer, who previously served as lead designer and project director for the highly acclaimed Fallout: New Vegas, is said to be leading this new project. Bethesda, the long-time steward of the Fallout franchise, will collaborate with Obsidian on its development.
A small team within Obsidian will reportedly continue to work on Avowed 2, with the possibility of reviving the project at a later date. This news comes amid significant changes for Xbox, including layoffs affecting a quarter of Obsidian's staff and the dissolution of other first-party studios like Undead Labs.
The prospect of a new Fallout game from Obsidian is likely to generate considerable excitement among fans. Fallout: New Vegas remains a beloved entry in the series, and a new mainline single-player installment has been absent for nearly a decade since Fallout 4's release in 2015. While the franchise has seen the multiplayer-focused Fallout 76 and a critically praised live-action TV series on Prime Video, the demand for a new solo experience persists.
With Bethesda Game Studios heavily invested in the development of The Elder Scrolls 6, a new Fallout title from that team is not expected for many years. Recent reports indicate Bethesda's intention to concentrate on its core franchises, and Obsidian's redirection toward Fallout appears to align with this strategy.