Obsidian has canceled a planned Avowed sequel to begin work on a new Fallout game.
That’s according to Bloomberg, which claims that studio design director Josh Sawyer will helm the new project, after shifting over from another planned RPG which is said to have been “similar structurally and thematically” to Fallout.
According to the report, progress on Avowed 2 was going well, and it was on track to be announced within the next year. However, it did not fit with Xbox CEO’s Asha Sharma’s new strategy.
The shift comes as part of a major ‘reset’ at Obsidian’s parent company, Xbox, which plans to lay off thousands of workers and refocus on its biggest franchises.
Around a quarter of Obsidian’s workforce is said to have lost their jobs this week, as part of the cuts. According to a WARN notice in California, seen by Game File, Obsidian is losing 52 workers, including 43 based in its California offices and nine in-state remote workers.
Obsidian was purchased by Microsoft in 2018, and last year, it released three games: Avowed, The Outer Worlds 2, and Grounded 2. According to Bloomberg, Obsidian will continue creating content for the latter two titles.
In a Bloomberg interview with Obsidian head Fergus Urquhart published earlier this year, it was implied that Grounded 2 was “a big hit” for the studio, but neither The Outer Worlds 2 nor Avowed met sales expectations.
Xbox-owned Bethesda, which stewards the Fallout franchise, hasn’t released any new mainline Fallout or Elder Scrolls games in over a decade, which is likely frustrating for its parent company, especially given the popularity of the Fallout Amazon show.
Bethesda’s head of studios told employees in a note this week that it will restructure around its “strongest franchises”.
Jill Braff said: “To best position Bethesda for future growth, we are shifting from a planning model primarily centered on what’s next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole.”
