Red Obsidian Remnant

As a massive layoff plan looms over Xbox's various subsidiaries, new reports suggest that the iconic RPG studio Obsidian Entertainment is on the chopping block, too. According to a July 2 The Game Business report, it appears that Compulsion Games, Double Fine, Ninja Theory, and Undead Labs aren't the only studios Xbox is looking to offload. Obsidian Entertainment--the studio behind games like Avowed, Fallout: New Vegas, Grounded, The Outer Worlds, and more--may get cut loose as well. As The Game Business noted, Xbox is looking to "reallocate where it spends money." Reportedly, the company want

Obsidian Entertainment is reportedly pulling the plug on a sequel to Avowed to prioritize a new Fallout game.

Xbox's big reset continues, as the company has targeted RPG icon Obsidian Entertainment, laying off about a quarter of its staff and cancelling a sequel to the underrated 2025 action-RPG Avowed. According to a July 8 Bloomberg report, Obsidian Entertainment has cancelled "multiple projects" so that the California-based developer can focus on a bigger franchise: Fallout. As part of the cuts, Avowed was a casualty, along with 52 workers, per a July 8 Game File report. As Bloomberg noted, progress on the Avowed sequel was "going well" and "on track" to be announced in the next year. Obsidian Ente