Jason Schreier Clarified Obsidian Entertainment Is Still Working on Avowed 2

One of the main events of the past week was the announcement that Obsidian Entertainment, the studio behind 2010's Fallout: New Vegas, is now in charge of developing the new Fallout installment, with Josh Sawyer, the director and lead designer, leading the project. However, as noted in the original source, despite this huge announcement, the studio was reportedly forced to cancel Avowed 2—though it seems this may not be entirely accurate.

As Bloomberg gaming journalist Jason Schreier revealed in his new YouTube video dedicated to the recent Xbox layoffs, Obsidian will continue working on Avowed 2; Schreier had been the first to report that the game was canceled in favor of the new Fallout installment. However, in the video, he clarified that a small team of developers is still working on the project and hopes the game will gain approval from Xbox leadership. You can check out Schreier's full quote about this below:

"Obsidian have a small team that was working on Avowed 2, that's going to still work 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 uncancelled, it was actually further along than most people would guess for a sequel to a game that came out last year. So I think their hope is perhaps they'll get it so close to finish that Xbox will look at it and say "Okay you can finish and release this, it won't cost that much more to finish it".

At the same time, Chris Avellone, the former head of Obsidian Entertainment, also confirmed that Avowed 2 has not been canceled. Moreover, he revealed that the studio has "paused" development on The Outer Worlds 2 story DLC, support for Grounded 2, and even an unannounced new Shadowrun installment led by John Gonzalez, the lead writer of Fallout: New Vegas. Avellone also added that Obsidian had previously pitched Bethesda the idea of making a new Fallout installment, but the studio consistently declined its requests.

Speaking of the new Fallout game from Obsidian, some details were shared this week by Windows Central's Jez Corden, who confirmed that it won't be an isometric game or a spin-off— it will be a full-fledged entry in the franchise. However, the release date and any specifics about its setting or story are currently unknown.