Avowed 2 may not be dead after all, despite recent claims that the fantasy RPG sequel had been canceled amid Microsoft’s ongoing restructuring of Xbox Game Studios.
Former Obsidian Entertainment co-founder Chris Avellone has suggested that Avowed 2 is still alive behind the scenes. According to Avellone, developers at Obsidian are reportedly continuing internal work on the sequel with the hope of presenting it to Xbox again once the company’s current reorganization is complete.
The latest uncertainty began after reports claimed that Obsidian had paused or shelved Avowed 2 as Microsoft shifted priorities across its gaming division. Those reports also suggested that the studio was moving more of its attention toward a new Fallout project, allegedly being led by Josh Sawyer, best known for directing Fallout: New Vegas.
Avellone’s comments paint a slightly different picture. He claimed that Avowed 2 has not been fully abandoned and that Obsidian may still want to save the project because a significant amount of pre-production work has already been completed. In game development, pre-production can include story planning, worldbuilding, gameplay systems, concept art, design documents, and early technical groundwork. If that work is already far along, it would make sense for developers to try to keep the sequel alive rather than let the effort go to waste.
However, the situation at Obsidian still appears to be uncertain. Avellone also claimed that many other internal projects have been put on hold during the restructuring. One of those projects was reportedly an unannounced RPG led by John Gonzalez, the former lead writer of Fallout: New Vegas. That game was said to be connected to the Shadowrun universe, though no official announcement had ever been made.
While some projects may be facing delays or uncertainty, The Outer Worlds 2 reportedly remains on track for now. Avellone said support for the upcoming sci-fi RPG has not changed, and planned expansions are still moving forward. Grounded also appears to remain in development, with assistance from outside development support.
If Microsoft continues to prioritize Fallout, Obsidian could become a major part of the franchise’s future. The studio has deep ties to the series, especially through Fallout: New Vegas, which remains one of the most beloved entries in the franchise. With experienced developers such as Josh Sawyer, John Gonzalez, Tim Cain, and Leonard Boyarsky potentially involved, Obsidian could have one of the strongest Fallout teams assembled in years.
Still, nothing is official yet. Microsoft and Obsidian Entertainment have not publicly responded to Avellone’s claims, and the future of Avowed 2 remains unclear. For now, fans of Obsidian’s fantasy RPG universe may have a small reason to stay hopeful: the sequel may be paused, but it may not be gone.
