{"id":681469,"date":"2026-07-09T01:59:13","date_gmt":"2026-07-09T01:59:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/681469\/"},"modified":"2026-07-09T01:59:13","modified_gmt":"2026-07-09T01:59:13","slug":"report-xbox-cancels-avowed-2-and-puts-obsidian-to-work-on-new-fallout-game","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/681469\/","title":{"rendered":"Report: Xbox Cancels Avowed 2 And Puts Obsidian To Work On New Fallout Game"},"content":{"rendered":"<p><a class=\"scanlines\" title=\"Report: Xbox Cancels Avowed 2 And Puts Obsidian To Work On New Fallout Game\" href=\"https:\/\/images.purexbox.com\/e95f28ea0fc67\/report-xbox-cancels-avowed-2-and-puts-obsidian-to-work-on-new-fallout-game.large.jpg\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/07\/report-xbox-cancels-avowed-2-and-puts-obsidian-to-work-on-new-fallout-game.900x.jpg\" width=\"900\" height=\"506\" alt=\"Report: Xbox Cancels Avowed 2 And Puts Obsidian To Work On New Fallout Game\"\/><\/a><\/p>\n<p>A new report has come out today about the future of Xbox studio Obsidian, with <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-07-08\/microsoft-s-xbox-to-shift-obsidian-studio-to-new-fallout-video-game?\" rel=\"nofollow noopener\" target=\"_blank\">Bloomberg<\/a>&#8216;s well-known reporter Jason Schreier claiming that the company will focus on a new Fallout game going forward, and not a sequel to <a href=\"https:\/\/www.purexbox.com\/games\/xbox-series-x\/avowed\" rel=\"nofollow noopener\" target=\"_blank\">Avowed<\/a>.<\/p>\n<p>Schreier says that progress on Avowed 2 had been &#8220;going well&#8221; and it would have been announced within the next year, but it doesn&#8217;t fit into new Xbox boss Asha Sharma&#8217;s plans. Nevertheless, a small number of people will continue working on it until <a href=\"https:\/\/www.purexbox.com\/games\/xbox-one\/fallout_76\" rel=\"nofollow noopener\" target=\"_blank\">Fallout<\/a> is &#8220;ready&#8221;, just in case it could be revived at some point in the future.<\/p>\n<p>&#8220;In the end, it did not fit into Sharma\u2019s overall strategy, according to people familiar with the game\u2019s development.&#8221;<\/p>\n<p>Instead, the focus now is for studio design director Josh Sawyer to lead the new Fallout game, although it&#8217;s said &#8220;the emerging strategy is still in flux&#8221; and that it &#8220;could still change&#8221;.<\/p>\n<p>Obsidian also plans to keep working on new content for <a href=\"https:\/\/www.purexbox.com\/games\/xbox-series-x\/outer_worlds_2\" rel=\"nofollow noopener\" target=\"_blank\">The Outer Worlds 2<\/a> and <a href=\"https:\/\/www.purexbox.com\/games\/xbox-series-x\/grounded_2\" rel=\"nofollow noopener\" target=\"_blank\">Grounded 2<\/a>. However, Sawyer was apparently working on a roleplaying game that&#8217;s seemingly getting the boot along with Avowed 2.<\/p>\n<p>&#8220;Under the new plan, studio design director Josh Sawyer will lead a new title in the Fallout universe&#8230;&#8221;<\/p>\n<p>&#8220;Previously, Sawyer had been directing a roleplaying game that was similar structurally and thematically to Fallout but was not part of the franchise.&#8221;<\/p>\n<p>The belief is that Obsidian lost around 25% of its workforce as part of the <a href=\"https:\/\/www.purexbox.com\/news\/2026\/07\/obsidian-id-software-and-others-confirmed-to-be-affected-by-xbox-layoffs\" rel=\"nofollow noopener\" target=\"_blank\">Xbox layoffs<\/a> this week, and this report does mention that &#8220;multiple&#8221; projects have been canned at the studio, although we didn&#8217;t know of any of them publicly.<\/p>\n<p>As always, we warn you that this is just reported information and nothing official, and even Schreier himself says that the plans could change. That said, he&#8217;s a reporter with a strong track record, so it&#8217;s most likely on the money.<\/p>\n<p>What are your thoughts on Obsidian working on Fallout instead of Avowed? Tell us in the comments below.<\/p>\n<p class=\"avatar\"><img decoding=\"async\" class=\"img lazy\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/12\/1766613369_65_avatar.jpg\" width=\"80\" height=\"80\" loading=\"lazy\" alt=\"Fraser Gilbert\"\/><\/p>\n<p>Fraser is the News Editor at Pure Xbox, where he spends his time reporting on the biggest stories in the world of Xbox and beyond.<\/p>\n","protected":false},"excerpt":{"rendered":"A new report has come out today about the future of Xbox studio Obsidian, with Bloomberg&#8216;s well-known reporter&hellip;\n","protected":false},"author":2,"featured_media":681470,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[227506,208,59,65977,266,86,56,54,55,183],"class_list":["post-681469","post","type-post","status-publish","format-standard","has-post-thumbnail","category-technology","tag-avowed-2","tag-fallout","tag-gb","tag-obsidian","tag-reports","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-xbox"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/681469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=681469"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/681469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/681470"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=681469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=681469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=681469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}