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 shifts developers from the open-world fantasy project to the post-apocalyptic series.
Bloomberg and Forbes cite internal sources confirming the change. Obsidian remains under Xbox Game Studios, and the shift aligns the studio with Bethesda’s Fallout franchise. Industry analysts suggest the move could accelerate Bethesda’s pipeline and give Xbox a new entry before the next console generation. Fans of Avowed will have to wait for any future announcement.