Obsidian Entertainment’s Shift from Avowed 2 to a New Fallout Project
Obsidian Entertainment has made headlines by canceling the anticipated sequel, “Avowed 2.” Amidst a significant wave of layoffs, the studio is redirecting its resources toward a new Fallout project. This decision marks a pivotal moment not only for Obsidian but also for fans of the RPG genre.
The Implications of Canceling Avowed 2
Originally, “Avowed 2” was on track for a reveal in the following year, as reported by Bloomberg. However, Microsoft has decided to pull the plug on this fantasy sequel in favor of a more established franchise. The new leadership under Xbox head Asha Sharma aims to streamline efforts around core gaming brands, prioritizing financial security over experimental projects.
This strategic pivot has resulted in hard realities for Obsidian, with 25% of its workforce facing layoff. According to official reports, 52 developers are being let go. Such drastic measures highlight the harsh nature of the gaming industry, where financial prudence often overshadows creative ambitions.
Josh Sawyer Takes the Helm
Transforming the landscape further is the appointment of Josh Sawyer as the lead on the new Fallout game. Recently, Sawyer was directing another RPG project that shared thematic and structural parallels with Fallout, making him an ideal choice for this task. For fans of “Fallout: New Vegas,” this transition is a glimmer of hope amid the chaos. His experience and understanding of what makes Fallout special are seen as invaluable.
This change is not merely a reaction to internal dynamics; it reflects a broader industry concern. Bethesda hasn’t released a new mainline Fallout or Elder Scrolls title in over a decade, generating mounting frustration within the company’s leadership. The success of the recent Amazon series has only intensified this urgency, as Microsoft aims to capitalize on what they see as unmissable financial opportunities.
The Cultural Impact on Obsidian
What does this mean for Obsidian going forward? Alongside the layoffs and the cessation of “Avowed 2,” the remaining teams are tasked with continuing post-launch support for “The Outer Worlds 2” and “Grounded 2.” The studio is now split between nurturing existing projects and diving into the new Fallout realm.
The cancellation of “Avowed 2” serves as a stark reminder of the cold business tactics often seen in the gaming industry. Changing directions to secure a reliable revenue stream like Fallout raises ethical questions. While the return of Josh Sawyer to the Fallout franchise is undeniably exciting for RPG aficionados, the circumstances surrounding this transition cast a shadow over the studio culture at Obsidian.
A Mixed Bag for Gamers
As fans, we must contemplate whether the promise of a new Fallout title led by Josh Sawyer can outweigh the painful layoffs and the disappointing news of “Avowed 2.” Economic realities often drive executive decisions in the gaming world—forcing studios to prioritize proven franchises at the expense of innovative creations.
In conclusion, while the new Fallout project might reignite excitement for many, it brings forth hard questions about the future trajectory of studios like Obsidian. The balance between financial viability and creative exploration remains a contentious issue in this ever-evolving industry landscape.

