[UPDATE - July 10, 2026] Jason Schreier is essentially backing Avellone's rumor in his latest YouTube video: By the way, quick side note is that Obsidian actually have a small team that was working on Avowed 2 that is still going to keep working on Avowed 2 even though it is canceled while they wait for other projects like Fallout to be ready for them. And maybe in hopes of getting it uncancelled. Maybe it was actually farther along than I think people would expect for a sequel to a game that came out last year. So, I think their […]

Read full article at https://wccftech.com/avowed-2-isnt-dead-yet-chris-avellone-says-as-obsidian-quietly-fights-to-re-pitch-it-after-xboxs-cancellation/

Obsidian Entertainment is one of the first-party Xbox studios most affected by the recent wave of layoffs. Kotaku had previously reported that the Irvine-based studio had lost around 25% of its staff, and that figure is now confirmed by two reputable sources: Bloomberg's Jason Schreier and Stephen Totilo, who wrote on Game File that 52 workers were cut from Obsidian based on a WARN (Worker Adjustment and Retraining Notification) notice filed in California. However, the studio is far from dead. According to Schreier, it's being recalibrated from its previous plans. In November 2025, former Obsidian founder Chris Avellone revealed that […]

Read full article at https://wccftech.com/obsidian-cancels-avowed-2-after-xbox-layoffs-pivots-to-new-fallout/