- Obsidian Entertainment has seen 25% of its employees laid off as part of Xbox layoffs.
- The studio reportedly had plans for an Avowed sequel, which have now been cancelled.
- Instead, it has now been handed over the next installment in the Fallout universe.
Xbox studio massacres continue as more teams get affected. Apart from the studios that are going independent, id Software also had over 70% of its team laid off, and other major studios like Obsidian are facing a similar situation.
While Obsidian Entertainment is in somewhat better condition, with 25% of its workforce getting laid off, an Avowed sequel was also reportedly canceled at the studio. However, it is now working on the new Fallout game.
Why it matters: The original Avowed, released in 2025, had a lot of expectations based on how many years of development it took, and it more or less delivered, with some loving the title, while others not so much.

Bloomberg reported that Obsidian Entertainment dropped its plans for Avowed 2 and has now been handed the next Fallout game. This isn’t the first time the studio is working on the series, as it previously developed New Vegas.
The title is widely considered one of the best entries in the franchise, and the studio has once again gotten a chance to deliver once more. However, based on the current situation with the layoffs, it’ll be seen if they can do that.

The studio has, of course, lost 25% of its developers. However, it is claimed that many of the key developers who worked on New Vegas are still there, which could be a positive. But for now, we don’t have any additional details on the project.
What are your thoughts on the Avowed sequel getting canceled as Obsidian Entertainment loses 25% of its employees? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.


