Obsidian Entertainment shifts to New Fallout Game after Avowed sequel cancellation

Bloomberg says Obsidian Entertainment is making a new Fallout game after a canceled Avowed sequel, following major layoffs at Xbox.

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Obsidian Entertainment shifts to New Fallout Game after Avowed sequel cancellation

reported this week that Obsidian Entertainment is making a new Fallout game, and the project is replacing a canceled sequel to Avowed. That puts one studio move directly against another: a long-promised RPG track is being cut back while Fallout moves forward inside the same shop.

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Fallout: New Vegas and 15 years

Obsidian Entertainment’s Fallout history is the reason this matters. The studio developed Fallout: New Vegas, and some players have been hoping for a followup to that game for 15 years or more, which makes any return to Fallout feel bigger than a routine assignment swap.

Last year, Avowed arrived as an action-RPG built in Eora, the fantasy world previously explored in Pillars of Eternity and its well-regarded sequel. That same studio also made The Outer Worlds, a space-set RPG with more sarcasm and satire, plus two DLC releases, Murder on Eridanos and Peril on Gorgon, and a Spacer’s Choice Edition with higher resolution, reworked lighting and environments, and various performance enhancements.

The Avowed sequel stops

The Avowed sequel had begun development before it was canceled, so the new Fallout game is not arriving as a side project; it is taking the place of work that already existed. That is the operational detail buried in the report: one in-flight game moved off the board, and another moved into the slot.

The cancellation came in the wake of major layoffs at Obsidian and across Xbox. For readers tracking where the studio’s effort goes next, the important point is not just that Fallout is back in the pipeline, but that the pipeline itself has been narrowed.

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What Obsidian builds next

The Outer Worlds 2 is still mentioned as an upcoming game, but the new Fallout project now sits at the center of Obsidian’s most visible long-term work. That leaves the studio with a sharper identity than it had during the long gap after Fallout: New Vegas: one proven Fallout team, one canceled Avowed sequel, and one new assignment that will draw the most attention the moment more details surface.

What exactly the new Fallout game will be and when Obsidian will release it is not answered yet. For now, the practical reading is simple: Fallout has advanced inside Obsidian, and Avowed’s sequel is the project that made room for it.

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Entertainment writer covering Hollywood, streaming platforms, and award seasons. Twelve years reviewing film and television for major outlets.