Microsoft’s Xbox reset is pivoting Obsidian to make Fallout instead of Avowed
Obsidian Entertainment is shifting its development focus toward a new Fallout title as part of a broader Xbox restructuring effort. The studio has canceled several projects, including a sequel to Avowed, amid significant staff layoffs.
Why it matters
The move highlights the volatile nature of the gaming industry and Microsoft's strategic pivot toward high-priority, established intellectual properties.
As part of Microsoft’s big Xbox “reset,” which includes layoffs affecting 3,200 staffers, jettisoning studios, and shifting investments to focus on “higher priority projects,” Obsidian Entertainment is changing its plans. The studio, behind games like Grounded and The Outer Worlds, is starting work on a new Fallout title and has canceled “multiple projects,” including a sequel to last year’s Avowed, according to Bloomberg.
The report relies on industry news and internal company shifts without taking a stance on the layoffs or the strategic decision.
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