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Report: Obsidian Cancels Avowed Sequel To Begin Work On A New Fallout Game
Game Informer • • technology
Key Points:
- Obsidian Entertainment is developing a new Fallout game, shifting focus from previously planned projects as part of Xbox’s strategy to prioritize major existing franchises.
- The studio has canceled several projects, including the sequel to its 2025 RPG Avowed, despite the sequel being on track and well-received internally.
- Approximately 25% of Obsidian’s staff were laid off due to Xbox’s restructuring, including longtime art director Daniel Alpert.
- Obsidian will continue work on Grounded 2 and DLC for The Outer Worlds 2, even as it pivots towards the new Fallout game under design director Josh Sawyer.
- The decision follows underperformance in sales of Avowed and The Outer Worlds 2, despite positive reviews, influencing Xbox CEO Asha Sharma’s new company strategy.
