Obsidian Reportedly Cancels Avowed 2 to Focus on a New Fallout Game

9 JULY, 2026 - Fallout 76

Obsidian Reportedly Cancels Avowed 2 to Focus on a New Fallout Game

Image via Obsidian Entertainment

In a move that has sent shockwaves through the gaming community, reports have emerged that Obsidian Entertainment has cancelled development on Avowed 2 to shift its full attention toward creating a new entry in the beloved Fallout franchise. The news comes just months after Avowed's release and represents a significant strategic pivot for the Microsoft-owned studio that has long been associated with some of the most celebrated role-playing games in history.

The decision, while unconfirmed by official sources, has ignited passionate debate among fans who find themselves torn between two very different feelings. On one hand, the prospect of Obsidian returning to the Fallout universe is nothing short of a dream scenario for countless RPG enthusiasts. On the other, the apparent abandonment of Avowed's universe before it could truly flourish has left many questioning whether the fantasy IP was given a fair chance to find its footing.

A Legacy Worth Revisiting

Obsidian's connection to Fallout runs deep, dating back to when key members of the studio worked at Black Isle Studios on the original Fallout titles. However, it was 2010's Fallout: New Vegas that cemented the developer's legendary status among fans of the post-apocalyptic franchise. Despite a notoriously troubled development cycle of just eighteen months, New Vegas delivered an experience that many consider superior to Bethesda's own entries in the series. The game's intricate faction system, morally complex storytelling, and memorable characters have earned it a devoted following that continues to grow nearly fifteen years after release.

Fallout New Vegas - GamersHeroes

The prospect of Obsidian returning to this universe with modern resources, adequate development time, and the full backing of Microsoft's considerable war chest has understandably generated enormous excitement. Forums and social media platforms have been flooded with speculation about potential settings, returning factions, and whether the studio might finally get the opportunity to realize its full vision for a Fallout title without the constraints that hampered New Vegas.

The Avowed Question

Yet this enthusiasm is tempered by genuine concern over Avowed's fate. The game, set in the same universe as Obsidian's Pillars of Eternity series, represented the studio's ambitious attempt to create a first-person fantasy RPG that could stand alongside the genre's titans. While critical and commercial reception was mixed, many felt the game showed genuine promise and deserved the opportunity to grow through sequels and expansions.

The cancellation of Avowed 2, if accurate, suggests that Microsoft may be prioritizing established blockbuster franchises over cultivating new intellectual properties. This approach, while commercially understandable, raises questions about creative diversity within the Xbox ecosystem. Obsidian has always thrived when given the freedom to explore different settings and storytelling approaches, and some worry that pigeonholing the studio into a single franchise could ultimately diminish what makes them special.

Obsidian Fallout - Obsidian Entertainment Wiki - SAIK

Industry Implications

The reported decision also highlights the increasingly precarious position of mid-tier games in today's market. Avowed was never positioned as a true blockbuster, existing in that challenging middle ground between indie darlings and massive AAA productions. The game required significant investment but was always going to struggle to compete with the cultural footprint of something like Fallout. In an era where publishers increasingly gravitate toward either low-risk smaller titles or guaranteed mega-hits, games like Avowed face an uphill battle for continued support.

Furthermore, this news raises interesting questions about the relationship between Obsidian and Bethesda, both now operating under the Microsoft umbrella. Bethesda Game Studios has traditionally guarded the Fallout franchise closely, and any new Obsidian project would presumably require significant coordination between the two studios. Whether this collaboration will prove fruitful or contentious remains to be seen, but the potential for creative friction cannot be ignored.

Looking Forward

Fallout 3 HD Wallpaper: Post-Apocalyptic Game Scene in Stunning Detail ...

For now, fans are left to speculate about what form this new Fallout project might take. Some have theorized about a return to the West Coast settings that defined the original games and New Vegas. Others dream of entirely new locations that could expand the franchise's lore in unexpected directions. The possibilities are genuinely exciting, even as the cost of this new direction continues to spark debate.

What seems certain is that Obsidian faces enormous expectations. The studio has spent over a decade living with the legacy of New Vegas, and any new Fallout title will inevitably be measured against that masterpiece. Whether they can recapture that lightning in a bottle while satisfying both longtime fans and newcomers to the franchise represents perhaps the greatest challenge of their storied history.

As we await official confirmation and additional details, one thing is clear: the gaming landscape has shifted in a significant way. The dream of a new Obsidian Fallout game, once thought impossible, now appears tantalizingly close to reality. Whether that dream was worth the sacrifice of Avowed's potential is a question the industry will be debating for years to come.

Fallout 76
Fallout 76

Fallout 76

Release date: 2020-10-06
Publishers: Larian Studios

Fallout 76 is a multiplayer-only game set in the universe of Fallout series. It is the first MMO game in the Fallout franchise and ninth installment overall. It is also the earliest game in the Fallout universe inner chronology, thus serving as a prequel to the whole series.

Setting

The game takes place in a post-apocalyptic world, a quarter century after a nuclear holocaust that turned most of the US into a radioactive wasteland. The players assume the roles of the various dwellers of Vault 76, presumably the first Vault-Tec bunker to release its inhabitants. Their goal is to reclaim the world. The vault is located in the Appalachian Mountains in West Virginia. Fallout 76 offers an open world with many locations based on real West Virginia places. Some of the new monsters are also based on the local folklore.

Gameplay

Unlike all previous games in its series, Fallout 76 features no human NPCs (although robots and monsters are present). Instead, the game delivers the story through records and environment. Some of Fallout series famous mechanics return in Fallout 76. The character creation is based on a modified version of the S.P.E.C.I.A.L. system of abilities and perks. V.A.T.S. targeting system also appears, albeit this time it works in real-time. The game allows the players to build homes and establish settlements in any part of the map. There are also nuclear missiles that allow the players to annihilate each other's settlements.

6 Pictures

Developers:
Todd Howard
Todd Howard
director
Inon Zur
Inon Zur
composer
Games in series:
+ show more (9 games)