Microsoft Reportedly Cancels Avowed Sequel as Obsidian Focuses on Fallout Game
Microsoft canceled the planned Avowed sequel, redirecting Obsidian to Fallout game development.
Aditya Raj
July 1, 2026 · 1 min read
Microsoft has canceled the Avowed sequel, redirecting Obsidian Entertainment to develop a new Fallout game instead. The decision comes despite Avowed's positive critical reception, as Microsoft prioritizes the Fallout IP following its TV series resurgence.
Microsoft has reportedly canceled the planned sequel to Obsidian Entertainment's fantasy RPG Avowed, redirecting the studio's resources toward a new Fallout title, according to multiple sources familiar with the matter.
Avowed launched in early 2025 to generally positive reviews, but sources indicate that internal metrics did not meet Microsoft's expectations for a full franchise commitment. The sequel, which was in early pre-production, has been shelved.
Information
Obsidian originally developed Fallout: New Vegas, which remains one of the most beloved entries in the franchise. A return to the series has been rumored for years.
Instead, Obsidian is now fully focused on developing a new Fallout game for Xbox and PC. The project is said to be in early development and could be years away from release.
“This is a big bet on Fallout. Microsoft sees the IP's resurgence from the TV series and wants Obsidian to capture that magic again.”
— Anonymous Xbox developer
A spokesperson for Microsoft declined to comment on the report.
Key Takeaways
- 1 Microsoft canceled the planned sequel to Obsidian's Avowed
- 2 Obsidian is now focused on developing a new Fallout game
- 3 Avowed launched in early 2025 to positive reviews
- 4 The new Fallout project is in early development and likely years from release
Frequently Asked Questions
Is Avowed getting a sequel?
No, Microsoft has reportedly canceled the planned Avowed sequel to redirect Obsidian toward Fallout development.
What Fallout game is Obsidian working on?
Details are scarce, but Obsidian is developing a new Fallout title for Xbox and PC, in early development stages.
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