Microsoft Reportedly Cancels Avowed Sequel As Obsidian Focuses On A Fallout Game Obsidian Entertainment, the studio behind the Pillars of Eternity series, The Outer Worlds, and Fallout: New Vegas, is undergoing significant restructuring as part of Microsoft’s broader efforts to reorganize its gaming division. Bloomberg reports that the developer, which was acquired by Microsoft in 2018, has canceled multiple projects, including a sequel to its open-world action RPG Avowed. The studio is now shifting its focus to a new Fallout game, according to the report. The changes come amid widespread layoffs across Microsoft’s gaming business. Bloomberg details that Obsidian is cutting around a quarter of its workforce, with specific layoffs outlined in WARN notices. Game File notes that the studio is reducing its staff by 52 employees, including 43 in-office workers based in Irvine, California, and nine remote employees within the state. These layoffs are part of a larger trend at Microsoft, as the company continues to streamline its operations. Other Xbox studios are also facing similar cuts. id Software, the developer behind Doom, is reportedly laying off approximately half of its staff, with more than 90 employees affected. Outside of gaming, Microsoft is eliminating another 3,200 jobs as part of its restructuring efforts. The decision to cancel Avowed’s sequel and pivot to a Fallout project marks a significant shift for Obsidian. The studio’s previous work on Fallout: New Vegas and its upcoming Fallout game has positioned it as a key player in the Fallout franchise, which has been a cornerstone of Bethesda Softworks’ portfolio. However, the cancellation of Avowed’s sequel raises questions about the studio’s ability to balance multiple high-profile projects amid financial and operational challenges.#microsoft #obsidian_entertainment #fallout_game #avowed_sequel #ashamed_sharma
