Bloomberg: Obsidian Entertainment cancels Avowed sequel, starts work on Fallout title amid layoffs

Obsidian Entertainment has canceled multiple projects, including a planned sequel to Avowed, and laid off a quarter of its staff as it starts work on a new game in the Fallout series, according to people familiar with the matter speaking to Bloomberg’s Jason Schreier.

A WARN notice issued in California today, received by Game File, indicates that 52 employees were let go from the Irvine-based developer.

The new Fallout title will reportedly be led by Obsidian Entertainment studio design director Josh Sawyer, who was previously directing a role-playing game similar structurally and thematically to Fallout, but was not part of the franchise.

Obsidian Entertainment previously developed Fallout: New Vegas, the only entry in the Bethesda Softworks Fallout universe not developed by Bethesda Softworks itself.

Progress on the canceled Avowed sequel was going well and on track to be announced within the next year, but ultimately did not fit into Xbox CEO Asha Sharma’s overall strategy, people familiar with the game’s development told Bloomberg.

However, some Obsidian Entertainment employees will reportedly continue to work on the Avowed sequels as they wait for new projects such as Fallout to be ready, seemingly in hopes of one day reviving the game.

Obsidian Entertainment will also continue to develop downloadable content for The Outer Worlds 2, as well as work on Grounded 2, the article said.