Avowed 2 Has Not Been Cancelled Following Layoffs at Obsidian – Rumor

Studio co-founder Chris Avellone said that he had heard from people still working at Obsidian that a "re-pitch" of Avowed 2 is planned.

Posted By | On 10th, Jul. 2026

Avowed_06

In light of recent layoffs at Xbox, rumors have indicated that Obsidian Entertainment was working on a sequel to its first-person action RPG Avowed, which reportedly got cancelled in favor of a new Fallout game developed by the studio. However, former co-founder of Obsidian, Chris Avellone, has taken to social media to reaffirm that Avowed 2 has not been cancelled.

According to Avellone, Obsidian was told that the projects it currently has in development were being “re-evaluated”. The studio is still seemingly on track to deliver on its planned expansions for The Outer Worlds 2, and while full development on Avowed 2 hasn’t yet begun, developers are reportedly hoping to “re-pitch” the concept.

“Aside from other news, Obsidian employees appear to have been told all the company’s projects were being ‘re-evaluated’ today,” wrote Avellone. “It seems Grounded is still going (mostly out-sourced in Eidos Montreal anyway, so no surprise), Outer Worlds 2 expansions still planned for now (1st one is Sept), and uh, despite reports, Avowed 2 is STILL being worked on (for now) in the hopes of being ‘re-pitched’ (whatever that means).”

He went on to note that other projects were being put on pause, including a rumored game based on the Shadowrun pen-and-paper tabletop RPG being headed up by John Gonzalez. Pillars of Eternity was also not mentioned. Responding to another post about how Avowed 2 may have gotten cancelled today, Avellone said that he has been told that the studio is continuing to work on it.

“They’re still working on it as of today, according to folks at Obsidian. They’re trying to ‘re-pitch’ it when the dust settles, probably because so much work was already put into it,” he said.

It is worth noting that, while Avellone has spent quite a bit of time at Obsidian working on projects like Pillars of Eternity, Star Wars: Knights of the Old Republic 2 – The Sith Lords, and Fallout: New Vegas, he left the company in 2015. This means that any information he gets is dependent on his sources that are still working at the studio. In the meantime, Avellone himself has worked as a freelance writer on a variety of projects, with his most recent contribution being Pathfinder: Wrath of the Righteous.

In the meantime, Obsidian Entertainment was seemingly hit quite hard by Xbox’s layoffs, with reports indicating that it lost around 25 percent of its workforce. Some of the now-former employees of the studio include The Outer Worlds art director Daniel Alpert, as well as other experienced developers, and even the recruiter.

The studio’s most recent releases have included Avowed, The Outer Worlds 2, and the Early Access launch of Grounded 2. Currently, the studio hasn’t made any announcement regarding potential project cancellations or that it will stop its ongoing development of Grounded 2.

Xbox had also confirmed that the division was undergoing heavy restructuring, and CEO Asha Sharma announced that a new COO had been appointed who would be directly accountable for the division’s profits and losses going forward.


Keep On Reading!

Once Human is Coming to PS5, Xbox Series X/S on August 25th

Once Human is Coming to PS5, Xbox Series X/S on August 25th

The console launch of Once Human coincides with a large update for all versions of the game that introduces a ...

Yoshi and The Mysterious Book Gets A Free Playable Demo

Yoshi and The Mysterious Book Gets A Free Playable Demo

That first chapter is more than enough to get your hooked on an adventure that’s equal parts adorable and ad...

Call of Duty: Black Ops 1 and 2 Have Just Been Shadow-Dropped For the PS4 and PS5

Call of Duty: Black Ops 1 and 2 Have Just Been Shadow-Dropped For the PS4 and PS5

Each title costs $40 and their Season Passes require an additional $30 each, but there are no graphical update...

EA Sports College Football 27 Guide – All The Fastest Players Ranked By Position

EA Sports College Football 27 Guide – All The Fastest Players Ranked By Position

Home in on the ten quickest footballers in each of the major team positions with this speed ranking guide for ...

EA Sports College Football 27 Guide – All Season 1 Field Pass Rewards

EA Sports College Football 27 Guide – All Season 1 Field Pass Rewards

Discover exactly what you can unlock in the free and premium paths of the S1 Field Pass for EA Sports College ...

Assassin’s Creed Black Flag Resynced Nearly Hits 100,000 Concurrent on Steam Amid “Mixed” Reviews

Assassin’s Creed Black Flag Resynced Nearly Hits 100,000 Concurrent on Steam Amid “Mixed” Reviews

Despite praise for the remake, many users are calling out the additional Character and Naval Packs not include...