Obsidian Entertainment: what does the layoff mean for players and the future of Fallout?
Intelligence Summary
- Obsidian Entertainment, known for Avowed and The Outer Worlds, is facing changes after layoffs and new projects.
Briefly summarized
- Obsidian Entertainment has lost about 25% of its staff due to recent Xbox layoffs.
- The planned sequel to Avowed has been canceled, raising questions about the studio’s future.
- Rumors suggest Obsidian is working on a new Fallout game, led by Josh Sawyer.
What happened?
Obsidian Entertainment, the studio behind popular titles such as Avowed and The Outer Worlds, is going through major changes. It was recently announced that the sequel to Avowed has been canceled, coinciding with a wave of layoffs within Xbox. This has resulted in the loss of around 60 to 70 employees, which amounts to roughly 25% of the studio’s total staff.
Why this matters
The impact of these layoffs and cancellations is significant. For players, this means not only uncertainty about future releases, but also the possibility that development on existing projects could be delayed. Confidence in the studio may take a hit, especially given Obsidian’s recent history of successful but also high-risk projects.
GAME-scanner analysis
The claims about the cancellation of the Avowed sequel are strongly supported by multiple reliable sources, including Bloomberg. The rumors about a new Fallout game also seem credible, especially given Josh Sawyer’s involvement, who previously found success with Fallout: New Vegas. However, it’s important to stress that details about the new projects have not yet been officially confirmed, so some caution is still warranted.
What does this mean for players?
For players, the main question is how these changes will affect the development of future games. The cancellation of the Avowed sequel could shift the studio’s focus toward other projects, such as the new Fallout game. That could bring both opportunities and risks, depending on how the studio restructures and which priorities it sets.
Timeline
2026-07-08: Obsidian Entertainment loses about 25% of its staff due to Xbox layoffs.
2026: The sequel to Avowed is canceled, raising questions about the studio’s future.
2026: Rumors emerge about a new Fallout game led by Josh Sawyer.