A report on Bloomberg has stated that Obsidian Entertainment has scrapped plans for an Avowed sequel and is instead working on a new Fallout game.
Josh Sawyer is set to front the Fallout project, having moved from another planned RPG that “similar structurally and thematically” to Fallout. Development on Avowed 2 was reportedly going well, and was on track for a formal reveal within the next year. Unfortunately, it became a victim of Xbox CEO Asha Sharma’s ‘reset’ plans, which include laying off 3,200 staff across various studios under the Microsoft Umbrella.
As previously reported, Obsidian has lost around 25% of its staff as a result of the Xbox cuts, although Bloomberg adds that the company will continue making content for The Outer Worlds 2 and Grounded 2 despite the layoffs.
Obsidian Entertainment has of course previously dabbled in the Fallout franchise, having developed 2010’s fan-favourite Fallout: New Vegas. The studio is also known for its work on Star Wars Knights of the Old Republic II: The Sith Lords, Pillars of Eternity, South Park: The Stick of Truth, and Pentiment.