Microsoft reportedly cancels Avowed sequel as Obsidian focuses on a Fallout game
The Fallout: New Vegas developer has not escaped Microsoft's Xbox layoffs unscathed. Obsidian Entertainment, the developer behind the Pillars of Eternity series, The Outer Worlds and Fallout: New Veg
The Fallout: New Vegas developer has not escaped Microsoft's Xbox layoffs unscathed. Obsidian Entertainment, the developer behind the Pillars of Eter
Read Full Story at Engadget →Why This Matters
The cancellation of *Avowed*'s sequel underscores a strategic pivot at Microsoft, where flagship franchises are being deprioritized in favor of safer bets like *Fallout*. It also signals a shift in Obsidian Entertainment’s creative bandwidth, raising questions about the studio’s long-term vision amid industry consolidation.
Background Context
Obsidian has long been a jewel in Microsoft’s RPG lineup, but its development pipeline has been disrupted by Xbox’s recent layoffs, which targeted teams across studios. The *Fallout* game now absorbing its focus is a high-stakes gamble, given the franchise’s cultural weight and the pressure to deliver a successor to *New Vegas*’s cult classic status.
What Happens Next
If *Fallout* underperforms, Microsoft may further retrench its RPG ambitions, leaving franchises like *Avowed* in limbo. Obsidian’s next move—whether doubling down on *Fallout* or diversifying—will reveal whether it can sustain its creative identity under corporate ownership.
Bigger Picture
This reflects a broader industry trend where publishers favor established IPs over original titles, even at studios known for innovation. The *Avowed* cancellation also highlights the fragility of mid-tier franchises in an era dominated by live-service games and blockbuster reboots.
