Obsidian Entertainment is reportedly shifting development focus to a new entry in the Fallout series. According to a report from Bloomberg, the studio has canceled a planned sequel to its recent RPG, Avowed, to pursue the new Fallout project.
This change in direction comes as part of broader shake-ups within Xbox's studios, which have included significant layoffs across various teams. While Obsidian continues to operate under the Xbox umbrella, the cancellation of the Avowed sequel signifies a pivot for the studio's future projects.
Avowed, which launched in May 2024, was Obsidian's latest major release. The studio is also known for its work on titles such as The Outer Worlds and Pillars of Eternity. The report does not specify details regarding the nature or scope of the new Fallout game, nor does it indicate a release window or platform specifics.
Microsoft has been undergoing a period of restructuring following its acquisition of Activision Blizzard and subsequent adjustments to its gaming division. This has led to the closure of several studios, including Arkane Austin and Tango Gameworks, and a significant reduction in workforce across many internal development teams. The reported shift at Obsidian appears to be another consequence of these ongoing strategic adjustments within Xbox Game Studios.