Obsidian Entertainment has canceled a planned sequel to Avowed while beginning work on a brand-new Fallout game reportedly led by New Vegas director Josh Sawyer. At the same time, the studio has reportedly been hit by significant layoffs, raising questions about Microsoft's long-term strategy for Xbox Game Studios.
Is prioritizing Fallout the right decision? From a business perspective, it makes sense. Fallout is one of Xbox's biggest franchises, especially after the success of the TV series. But does today's Obsidian still have what it takes to deliver another RPG on the level of Fallout: New Vegas?
Do you think Microsoft made the right call, or should Obsidian have continued building the Avowed franchise instead? Let me know your thoughts in the comments.
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Source: https://www.gematsu.com/2026/07/bloomberg-obsidian-entertainment-cancels-avowed-sequel-starts-work-on-fallout-title-amid-layoffs
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