Obsidian’s Avowed 2 Still in Development After Xbox Cancellation

Xbox’s restructuring led to the cancellation of the sequel to Obsidian Entertainment’s 2025 RPG Avowed. Despite the official halt, a small internal team has kept working on the project, according to journalist Jason Schreier. The team hopes to bring the game close enough to completion that Microsoft might reconsider and green‑light a release, arguing that only minimal effort would be needed to finish it. Reports note that Avowed 2 was further along in development than expected, and the studio’s remaining resources are now being redirected toward a new Fallout title under director Josh Sawyer. The situation follows layoffs affecting roughly a quarter of Obsidian’s workforce and a broader shift at Xbox toward its largest franchises.