Microsoft’s Xbox division has directed Obsidian Entertainment to focus on a new Fallout game. The studio’s planned sequel, Avowed 2, is being cancelled to reallocate staff and funding. The decision moves developers from the open-world fantasy project to the post-apocalyptic series.
Bloomberg and Forbes report internal sources confirming the change. Obsidian stays under Xbox Game Studios, and the shift aligns the studio with Bethesda’s Fallout franchise. Industry analysts note the move could speed up Bethesda’s pipeline and give Xbox a new entry before the next hardware cycle. Fans of Avowed will have to hold on for any future announcement.