Microsoft’s Xbox reset is pivoting Obsidian to make Fallout instead of Avowed

Microsoft’s Xbox overhaul is reportedly changing Obsidian Entertainment’s roadmap, with the studio starting work on a new Fallout title while canceling multiple projects, including an Avowed sequel. The move follows broader Xbox cuts and a push to focus investment on higher-priority projects.

The shift suggests Xbox is leaning harder on proven franchises with built-in demand, especially after the success of the Fallout TV adaptation. Prioritizing established IP may improve near-term commercial odds, but it could also reduce room for newer franchises like Avowed to grow.