xbox

Xbox Cancels Obsidian's Avowed Sequel, Lays Off About 25% of Staff

Bloomberg and Game File report that Xbox and Obsidian have cancelled the sequel to 2025 RPG Avowed and laid off roughly 52 employees, about a quarter of Obsidian's staff. Sources say multiple projects were cut so the studio can focus on the Fallout franchise under Xbox's strategy. Reports also indicate the Avowed sequel was progressing and a small group may continue work in case it is reconsidered. The original Avowed earned generally positive reviews but failed to meet Microsoft's sales expectations.

• Avowed sequel cancelled, per Bloomberg/Game File
• Roughly 52 layoffs — about 25% of staff
• Studio shifting resources toward Fallout projects
• Sequel reportedly on track; small chance of revival; original underperformed on sales