Microsoft’s Xbox division has ordered Obsidian Entertainment to put first a new Fallout game. The studio’s planned sequel, Avowed 2, is being scrapped to free up staff and funding. The decision moves developers from the open-world fantasy project to the post-apocalyptic series.
Bloomberg and Forbes cite internal sources confirming the change. Obsidian remains under Xbox Game Studios, and the shift aligns the studio with Bethesda’s Fallout franchise. Industry analysts note the move could accelerate Bethesda’s pipeline and give Xbox a new entry before the next hardware cycle. Fans of Avowed will have to wait for any future announcement.