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TechnologyJul 9, 2026· 2 min read

Obsidian: Is Avowed 2 shelved to develop a new chapter of Fallout?

Obsidian Entertainment is reportedly making significant changes to its roadmap following the recent reorganization process initiated by Xbox. According to rumors reported by Bloomberg, the studio has undergone a workforce reduction of about 25%, a situation that has led to a reassessment of priorities in the development of upcoming video games.

Among the main consequences is the suspension of the Avowed 2 project. Sources cited in the report explain that the decision was made following the lower-than-expected commercial results obtained by the first chapter. Previously, Obsidian had planned to turn Avowed into a series, rapidly developing the sequel by leveraging much of the technology and resources already created for the original title.

With the downsizing of projects, the studio has decided to focus its efforts on a new episode of the Fallout series. Leading the development will be Josh Sawyer, a long-time figure at Obsidian who was already involved in the making of Fallout: New Vegas, a chapter that over time has gained strong approval among fans of the saga.

Fallout, Avowed 2, and further details on Obsidian's projects

According to the same rumors, Sawyer was already working on a project with structural and thematic characteristics similar to those of the Fallout universe. This aspect likely favored the decision to assign him to lead the new game.

Bloomberg's report also indicates that Avowed 2 is not the only project affected by the reorganization. Other unannounced games may also have been canceled as part of Xbox's new strategy, which aims to concentrate investments on intellectual properties considered more commercially viable.

Despite this, the future of Avowed may not be definitively compromised. Sources indicate that a small group of developers will continue to work on the project in the background while most of the studio is focused on the new Fallout. The goal would be to maintain an active development base so that the sequel can be resumed if the series is relaunched in the future.