While plans are seemingly subject to change, it seems that Avowed 2, alongside other unannounced projects, has been cancelled. The former was apparently progressing well, with an announcement planned for next year, but reportedly fell by the wayside following Xbox CEO Asha Sharma’s big reset plan.

Work will apparently continue on the sequel, which would have built on the original’s world and released at a quicker pace, but that’s only while Obsidian prepares for Fallout. Once pre-production is purportedly complete, Avowed 2 may be abandoned quickly.

Development is still ongoing for Grounded 2 (currently in early access) and The Outer Worlds 2’s story DLC, which has yet to receive any new details. But the reported shift towards Fallout isn’t surprising – Obsidian admitted that Avowed had under-performed after spending over six years in development and facing numerous challenges.

Of course, there have been rumors that Bethesda, which also suffered layoffs, is focusing more on similar high-priority projects like The Elder Scrolls. Given the New Vegas pedigree and demands for a sequel (or at least a remaster), it probably seemed fitting to mandate a new Fallout from Obsidian. Stay tuned for updates on whether it actually manifests, though.