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Xbox Axes Avowed Sequel, Obsidian Entertainment Hit by Layoffs

July 9, 2026 JauntyM 0
Xbox Axes Avowed Sequel, Obsidian Entertainment Hit by Layoffs

Get ready for some tough news, fellow gamers, especially those of you who were looking forward to more adventures in the world of Avowed. Reports are surfacing that Xbox’s ongoing restructuring has unfortunately led to the cancellation of a planned sequel for Obsidian Entertainment’s fantasy RPG, Avowed. Adding to the blow, the beloved studio behind titles like Fallout: New Vegas and Pillars of Eternity has also seen a significant portion of its staff laid off.

According to recent reports, Obsidian Entertainment has scrapped “multiple projects” as part of a strategic shift to double down on a major franchise: Fallout. This decision, unfortunately, means the promising Avowed sequel is no longer on the cards. It’s estimated that around a quarter of Obsidian’s workforce, approximately 52 individuals, have been impacted by these layoffs.

What makes this news even harder to swallow is that the Avowed sequel was reportedly progressing well and was even on track for an announcement sometime next year. Obsidian had big plans to build on the original game’s foundation, aiming for a quicker development cycle by leveraging existing world assets and technology. However, it seems this vision didn’t align with Xbox CEO Asha Sharma’s broader strategy for the gaming giant.

There’s a minuscule glimmer of hope, albeit a very faint one. Some reports suggest that a small team within Obsidian might continue preliminary work on the Avowed sequel. This is in the hope that Xbox might reconsider the project’s viability in the future. However, for now, the future of Avowed 2 remains largely uncertain, despite earlier indications that Obsidian would continue expanding its universe, which also includes the Pillars of Eternity series – itself in a bit of limbo since its last major release in 2018.

For those who enjoyed the first Avowed, this is undoubtedly a bummer. While the game didn’t hit Microsoft’s sales expectations, it still garnered a respectable reception from players and critics alike. It holds a “mostly positive” rating on Steam and a Metacritic score of 80, showing that many found its high-fantasy setting and gameplay engaging.

Many fans, including some of us here at PakGamersHub, poured dozens of hours into Avowed and appreciated its unique blend of combat, intriguing narrative, and rewarding exploration. The game truly showcased Obsidian’s knack for creating rich, immersive RPG experiences.

A sequel held immense potential. The original Avowed ended on a tantalizing cliffhanger, leaving plenty of narrative threads to explore. The world itself is brimming with fascinating characters and conflicts begging for further development. And let’s not forget the magic system – even for players who typically shy away from spellcasting, Avowed’s magic felt incredibly satisfying and powerful.

Alas, despite the enthusiasm from fans and even the former director, Carrie Patel, who expressed a desire for more Avowed, it appears Microsoft is simply not interested in pursuing a sequel at this time. It’s a sad day for fans who were hoping to revisit the Living Lands.

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