Obsidian Entertainment studio has changed its plans for the coming years. According to Bloomberg, the development of an Avowed sequel has been canceled, and the team has switched to creating a new game in the Fallout universe.
According to the publication, the new project will be led by Josh Sawyer, known for Fallout: New Vegas and Pillars of Eternity. He previously worked on another role-playing game that was reportedly "structurally and thematically" close to Fallout.
Bloomberg sources note that the development of Avowed 2 was progressing successfully, and the game's announcement was planned within the next year. However, the project did not fit into Xbox's new strategy, which is being implemented by division CEO Asha Sharma.
The decision was part of a large-scale Xbox restructuring. After the recent wave of layoffs, Microsoft intends to focus on its largest franchises. According to Bloomberg, about a quarter of Obsidian employees were affected by the cuts. According to a WARN notice reviewed by Game File, 52 people will leave the studio: 43 employees from California offices and nine remote workers registered in the state.