A new report claims that Obsidian Entertainment is still working on a sequel to Avowed despite news that Xbox had canceled the project as part of its ongoing restructuring efforts. Avowed launched in 2025 as Obsidian’s first attempt at a first-person RPG set in the Pillars of Eternity universe.
On July 8, 2026, Bloomberg reported that Xbox had scrapped plans for a follow-up to Obsidian’s Avowed, a mostly well-received RPG that didn’t quite become the commercial success the publisher was looking for. Those same reports claim that Xbox has elected to shift Obsidian’s efforts toward developing a new Fallout game under Josh Sawyer, as the publisher has little interest in exploring new or smaller IPs any further. However, a new insider scoop suggests that Avowed 2 may not be dead after all.
Obsidian Reportedly Hasn’t Given Up on Avowed 2 Following Xbox Restructuring
Jason Schreier of Bloomberg, who also broke the original Avowed news, is now reporting that Avowed 2 is still alive internally at Obsidian despite previously stating it was canceled. In a YouTube video uploaded on July 10, Schreier states that a small group of developers is still chipping away at Avowed 2 while they wait for Fallout or other projects to be ready for them, perhaps in hopes that Xbox will take notice and “uncancel” the game. Avowed 2 is allegedly pretty far along in development, and the team is hoping Xbox will decide it won’t cost too much to get the project out the door. The Bloomberg journalist’s claims align with what former Obsidian chief creative officer and co-founder Chris Avellone has said on Twitter, who also noted that the studio is still trying to “re-pitch” the game because a lot of work has already been put into the project.
“Obsidian, they actually have a small team that was working on Avowed 2 that is still going to keep working on Avowed 2, even though it is canceled, while they wait for other projects like Fallout to be ready for them, maybe in hopes of getting it uncanceled. It was actually planned farther along than I think people would expect for a sequel to a game that came out last year. So I think their hope is that they’ll get it so close to being finished that Xbox will look at it and say, ‘Okay, yeah, you can finish and release this. It won’t cost that much more to finish it.’” – Jason Schreier (YouTube)
Click or tap on the games that match the category
Xbox has not yet made any statement regarding Avowed 2 or Obsidian’s next project, and it’s unlikely anything will come down the pipeline soon. It has been reported that Xbox is shifting its studios under Zenimax to be franchise-first studios, meaning that Obsidian will likely focus solely on Fallout and Bethesda on The Elder Scrolls 6 for now, while new IPs like Avowed may fall by the wayside, to the disappointment of many fans. However, it is worth noting that this is based on insider reports rather than official confirmation, and plans may change as Xbox’s restructuring continues.
While it might be a tough time to be an Avowed fan, Schreier’s report at least offers a glimmer of hope to those who want to see a sequel to the RPG. Fans can still root for the developers and hope that all the work done on Avowed 2 so far doesn’t go to waste, as Xbox could potentially shelve the project for a later time. While Microsoft’s new strategy may be prioritizing established franchises over new IPs, hopefully Avowed 2 gets approved one day, should business priorities change.
As Xbox continues its layoffs and restructuring, at least fans do still have the first Avowed to fall back on. Although some of Xbox’s previous decisions may have caused the publisher to fall on hard times, its previous willingness to let studios like Obsidian create new IP like Avowed or Pentiment is what led to the creation of great games that fans want to see sequels of in the first place. Until Microsoft or Obsidian publicly comments on the matter, Avowed 2‘s future remains uncertain, but fans can hold a cautious optimism about potentially inhabiting the Living Lands once more as Obsidian devs continue to carry on and plug away at the project.
- Released
-
February 18, 2025
- ESRB
-
Mature 17+ / Blood and Gore, Strong Language, Violence
- Publisher(s)
-
Xbox Game Studios
