Obsidian Nukes Avowed 2 in Favor of New Fallout Game

Obsidian is reportedly pivoting toward a new Fallout game following a significant Xbox reset that resulted in layoffs of up to 25% of its staff. According to Bloomberg insider reports, the studio effectively cancelled Avowed 2 due to the first game's lackluster commercial performance. While Obsidian previously intended to build the Avowed franchise by rapidly developing a sequel using existing technology, the studio has now narrowed its focus, cancelling several projects to prioritize the new Fallout title.