PlayToEarnTry Arena
July 17, 2026Editorial3 min read

Obsidian Shifts Focus from Avowed to Fallout

Obsidian Entertainment is reportedly prioritizing a new Fallout game at the expense of Avowed's sequel following significant layoffs.

Obsidian Entertainment, known for its acclaimed titles like Fallout: New Vegas, is reportedly redirecting its development efforts towards a new Fallout game, sidelining the anticipated sequel to Avowed. This shift comes in the wake of substantial layoffs at Microsoft, impacting about 3,200 employees across its gaming divisions.

What Are the Impacts of Microsoft's Layoffs on Obsidian?

Microsoft's recent decision to cut 3,200 jobs has reverberated throughout its gaming studios, with Obsidian Entertainment being one of the most affected. Reports indicate that Obsidian lost approximately 25% of its workforce, which has forced the studio to reassess its project priorities. As a result, the sequel to Avowed, a title that many fans were eagerly anticipating, has been deprioritized in favor of the new Fallout project.

According to industry analysts, this shift reflects a broader trend within the gaming industry where studios must pivot quickly to align with corporate strategies and market demands. The layoffs also highlight the challenges that many game developers face in a rapidly evolving landscape.

Why Is the Fallout Franchise Being Revived Now?

The Fallout franchise has consistently demonstrated strong sales and player engagement. Fallout 76, despite its initial struggles, has reported over 18 million players as of 2023, showcasing the enduring appeal of the series. Furthermore, per the report by NPD Group, Fallout: New Vegas remains one of the highest-rated RPGs on Metacritic, with a score of 84, indicating a lasting legacy that Obsidian aims to build upon.

"The Fallout series has a rich history and a dedicated fanbase, making it a strategic priority for us moving forward," said a source close to Obsidian. This focus on established franchises is not uncommon, especially in a market that increasingly favors recognizable IPs over new titles.

What Does This Mean for Avowed's Future?

The future of Avowed remains uncertain as Obsidian reallocates resources towards the Fallout project. Originally announced in 2020, Avowed was expected to offer a fresh experience set in the Pillars of Eternity universe. With the current shift, fans are left wondering about the timeline for Avowed's release, which was initially projected for late 2024. A source familiar with the matter stated, "We hope to return to Avowed when we are in a better position to support its development fully."

Key Takeaways

  • Obsidian Entertainment has lost approximately 25% of its workforce due to Microsoft layoffs.
  • The studio has shifted focus from Avowed to developing a new Fallout game.
  • Fallout 76 has over 18 million players, highlighting the franchise's ongoing relevance.
  • Avowed's sequel is currently on hold, with hopes to revisit it in the future.

FAQ

What led to the layoffs at Microsoft?

The layoffs were part of a larger strategy to streamline operations and reduce costs amid changing market conditions in the gaming industry.

When can we expect the new Fallout game to release?

While an official release date has not been announced, the development timeline is being prioritized, reflecting the studio's urgency to capitalize on the franchise's popularity.

Is Avowed completely canceled?

No, Avowed is not canceled; however, its sequel has been deprioritized to accommodate the development of the new Fallout game.

  • #Obsidian
  • #Fallout
  • #Avowed
  • #Microsoft
Share𝕏
← PlayToEarn