Obsidian Reportedly Cancels Avowed 2 to Make a New Fallout Game Led by Josh Sawyer

Obsidian Entertainment has reportedly canceled development of Avowed 2 and several other unannounced projects to shift resources toward a brand-new Fallout game.

The change comes amid Microsoft's ongoing restructuring of its Xbox business, which has seen thousands of job cuts, studio closures, and the cancellation of multiple projects across Xbox Game Studios.

According to a Bloomberg report, the new Fallout project will be led by Josh Sawyer, the veteran RPG designer who served as project director and lead designer on Fallout: New Vegas, widely regarded as one of the greatest entries in the franchise. Sawyer had been developing another role-playing game that shared a similar structure to Fallout before Microsoft's strategic shift redirected the team toward the post-apocalyptic series.

Some sources also say that Bethesda Game Studios, the longtime steward of the Fallout franchise, will collaborate with Obsidian on the project. While Obsidian has shelved plans for a full sequel to Avowed, the project hasn't been abandoned entirely.