Microsoft reportedly cancels Avowed sequel as Obsidian focuses on a Fallout game

The Fallout: New Vegas developer has not escaped Microsoft's Xbox layoffs unscathed. Obsidian Entertainment, the developer behind the Pillars of Eternity series, and, is being reshuffled as part of Xbox's larger reset and mass layoffs across Microsoft's gaming business. Josh Sawyer, the director of and the Medieval adventure game, is reportedly leading development of the new game. Getting a new Fallout game out is particularly relevant given that, a multiplayer survival game from 2018, is technically the most recent release and Fallout has now been adapted into a successful streaming series on Amazon Prime Video. This change in studio direction is also being paired with layoffs.