Obsidian Shifts Focus to New Fallout Game as Avowed Sequel Shelved
Josh Sawyer Leads Development of New Fallout Project
Obsidian Entertainment is pivoting its development pipeline toward a new Fallout game, according to a report by Bloomberg. The project, which is being led by studio design director Josh Sawyer, aligns with a new initiative from Xbox to prioritize its largest existing franchises. Obsidian previously developed the 2010 title Fallout: New Vegas.

Asha Sharma Cancels Avowed Sequel Following Staff Reductions
As part of this strategic shift under Xbox CEO Asha Sharma, Obsidian has canceled the development of a planned sequel to its 2025 RPG, Avowed. While the project is effectively shelved, reports indicate some employees will continue working on it in the hope of a potential future revival. The cancellation follows significant staff reductions at Obsidian, which have impacted approximately 25% of the studio’s workforce.
Grounded 2 and The Outer Worlds 2 Continue Production
Despite the change in direction, Obsidian will continue development on Grounded 2 and upcoming DLC for The Outer Worlds 2. Both Avowed and The Outer Worlds 2 were released in 2025, and while both received generally positive reviews, they underperformed in sales.
Recommended Fantasy RPGs for Avowed Fans
With the future of the Avowed series uncertain, players seeking similar fantasy RPG experiences can look to these titles available for play:
- Dragon’s Dogma 2: Players act as the Arisen, exploring diverse environments and battling giant monsters alongside pawns. The game supports multiple character classes and weapons. The Dark Arisen expansion is scheduled for release on October 8, 2026.
- The Outer Worlds: Created by Obsidian, this space-based RPG features extensive lore, companion-driven quests, and a satirical tone. Versions include the Spacer’s Choice Edition and two DLC expansions: Murder on Eridanos and Peril on Gorgon.
- It features strategic combat, meaningful player choices, and a Game of the Year Edition that includes three DLC packs.
- GreedFall: Developed by Spiders, this game follows a diplomat named De Sardet on the island of Teer Fradee. It offers branching dialogue and both real-time and turn-based combat options.
- The Technomancer: Another title from developer Spiders, this game centers on the role of a Technomancer within its narrative.