{"id":5343,"date":"2026-07-09T18:26:09","date_gmt":"2026-07-09T10:26:09","guid":{"rendered":"https:\/\/www.gametrader.sg\/blog\/obsidian-new-fallout-game-avowed-sequel-cancelled\/"},"modified":"2026-07-09T18:26:09","modified_gmt":"2026-07-09T10:26:09","slug":"obsidian-new-fallout-game-avowed-sequel-cancelled","status":"publish","type":"post","link":"https:\/\/www.gametrader.sg\/blog\/obsidian-new-fallout-game-avowed-sequel-cancelled\/","title":{"rendered":"Obsidian Is Making a New Fallout Game \u2014 And Avowed 2 Is Dead"},"content":{"rendered":"<p>Obsidian Entertainment \u2014 the studio that gave us <em>Fallout: New Vegas<\/em>, one of the most beloved RPGs ever made \u2014 is reportedly returning to the Fallout universe. According to <a href=\"https:\/\/gematsu.com\/2026\/07\/bloomberg-obsidian-entertainment-cancels-avowed-sequel-starts-work-on-fallout-title-amid-layoffs\">reporting by Bloomberg&#8217;s Jason Schreier<\/a>, a new game in Bethesda&#8217;s post-apocalyptic franchise is now in development at Obsidian, with studio design director Josh Sawyer leading the project. The bad news for fans of the studio&#8217;s last title: the <em>Avowed<\/em> sequel is dead.<\/p>\n<figure class=\"gt-video\">\n<div style=\"position:relative;padding-bottom:56.25%;height:0;overflow:hidden;\"><iframe src=\"https:\/\/www.youtube.com\/embed\/4YEKb4i3Pbw\" title=\"Avowed - Official Launch Trailer\" loading=\"lazy\" style=\"position:absolute;top:0;left:0;width:100%;height:100%;border:0;\" allow=\"accelerometer;clipboard-write;encrypted-media;gyroscope;picture-in-picture;web-share\" allowfullscreen><\/iframe><\/div><figcaption>Avowed \u2014 Official Launch Trailer \u2013 via XBOX on YouTube<\/figcaption><\/figure>\n<h2>Josh Sawyer Is Leading a New Fallout Title at Obsidian<\/h2>\n<p>The new project is in early development and led by Sawyer, who was previously directing a separate role-playing game described by Bloomberg&#8217;s sources as structurally and thematically similar to Fallout \u2014 but outside the franchise entirely. That original game has now been shelved in favour of an actual Fallout title. No platforms, release window, or title has been publicly confirmed. Obsidian and Xbox have not issued an official statement.<\/p>\n<p>For Singapore&#8217;s PC and Xbox gaming community, this is the kind of news worth sitting with. Sawyer directed <em>Fallout: New Vegas<\/em> \u2014 the only Fallout game not made by Bethesda itself, and still widely considered the high-water mark for the series&#8217; storytelling, moral depth, and faction-driven design. Many Singapore and Southeast Asian RPG fans grew up with New Vegas as a formative game. The prospect of Sawyer returning to Fallout, with a full mandate from Microsoft and the full weight of Obsidian behind him, is the most exciting RPG development announcement in years \u2014 even if the game is years away.<\/p>\n<h2>Avowed 2 Was Killed Before It Could Be Announced<\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/07\/avowed-combat-screenshot.jpg?w=474&#038;ssl=1\" alt=\"Avowed gameplay \u2014 combat with enemies on a coastal beach\" data-recalc-dims=\"1\" \/><figcaption>Image courtesy of Obsidian Entertainment<\/figcaption><\/figure>\n<p>The <em>Avowed<\/em> sequel was well into development and on track to be publicly announced within the coming year, according to sources who spoke to Bloomberg. The cancellation did not come from technical or creative failure \u2014 by all accounts it was going well. It came from a strategic decision by Xbox CEO Asha Sharma, who is reorienting Microsoft&#8217;s gaming investments around fewer, higher-profile bets following the company&#8217;s wider <a href=\"\/blog\/xbox-layoffs-3200-five-studios-2026\/\">restructuring announced earlier this month<\/a>.<\/p>\n<p>An <em>Avowed<\/em> sequel \u2014 solid and well-received, but not a blockbuster seller \u2014 apparently did not clear that bar. Bloomberg reports that some Obsidian employees who worked on the sequel will remain attached to it in a holding capacity while the Fallout project ramps up, in the hope of one day reviving it. Whether that happens depends entirely on how Microsoft&#8217;s broader gaming recovery shapes up over the next few years.<\/p>\n<h2>52 Obsidian Staff Let Go in Latest Xbox Cuts<\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/07\/obsidian-entertainment-logo.jpg?w=474&#038;ssl=1\" alt=\"Obsidian Entertainment logo\" data-recalc-dims=\"1\" \/><figcaption>Image courtesy of Obsidian Entertainment<\/figcaption><\/figure>\n<p>A WARN notice filed in California \u2014 received and reported by Jason Schreier&#8217;s Game File newsletter \u2014 confirms 52 employees were let go from Obsidian&#8217;s Irvine studio, roughly a quarter of its total headcount. These cuts are the most concentrated to hit any single Xbox studio in the current round of layoffs and represent a meaningful loss of institutional knowledge and development capacity, even as the studio pivots to an ambitious new direction.<\/p>\n<h2>What&#8217;s Still in the Pipeline at Obsidian<\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/07\/avowed-gameplay-screenshot.jpg?w=474&#038;ssl=1\" alt=\"Avowed first-person gameplay \u2014 discovering trap wires in a forest\" data-recalc-dims=\"1\" \/><figcaption>Image courtesy of Obsidian Entertainment<\/figcaption><\/figure>\n<p>Obsidian is not shutting down or retreating. The studio will continue producing DLC for <em>The Outer Worlds 2<\/em> and is actively developing <em>Grounded 2<\/em>, the sequel to its popular co-op survival game. The new Fallout project is the centrepiece, but Obsidian remains a multi-project studio \u2014 a leaner one now, but still operating across multiple titles.<\/p>\n<p>For Singapore players who played <em>Avowed<\/em> via Xbox Game Pass or picked it up on Steam, nothing about the original game changes. The sequel cancellation does not affect the base game or any existing content. As for the new Fallout title: there is no SEA release window yet, and given the project appears to be in early stages, realistically we are looking at several years. But if Obsidian&#8217;s track record in this franchise is anything to go by, it will be worth the wait. Watch this one. Check back at <a href=\"\/blog\/category\/game-industry-news\/\">Game Industry News<\/a> for any further updates.<\/p>\n<p><!--GT-SCOUT source=\"Web (English)\" theme=\"Video games\" flags=\"none\"--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Obsidian Entertainment is reportedly making a new Fallout game led by Josh Sawyer, even as Xbox cancels the Avowed sequel and cuts 52 staff. Here&#8217;s what Singapore PC gamers need to know.<\/p>\n","protected":false},"author":11,"featured_media":5339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":[]},"categories":[10],"tags":[700,699,701,698,47,96],"class_list":["post-5343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-game-industry-news","tag-avowed","tag-fallout","tag-josh-sawyer","tag-obsidian-entertainment","tag-rpg","tag-xbox"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/07\/avowed-launch-trailer-key-art-1.jpg?fit=1280%2C720&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p13AlF-1ob","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3800,"url":"https:\/\/www.gametrader.sg\/blog\/call-of-duty-black-ops-black-ops-2-ps5-ps4-july-2026\/","url_meta":{"origin":5343,"position":0},"title":"Call of Duty: Black Ops and Black Ops II Are Finally Coming to PS5 This July","date":"June 18, 2026","format":false,"excerpt":"Treyarch has confirmed Black Ops 1 and Black Ops 2 are being ported to PS4 and PS5 in July 2026, with full Campaign, Multiplayer, and Zombies \u2014 the first time PlayStation players can access these classics on modern hardware.","rel":"","context":"In &quot;Game News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/06\/call-of-duty-black-ops-ps5-key-art.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3816,"url":"https:\/\/www.gametrader.sg\/blog\/r-type-tactics-i-ii-cosmos-out-now-june-2026\/","url_meta":{"origin":5343,"position":1},"title":"R-Type Tactics I \u2022 II Cosmos Is Out Now \u2014 The 16-Year Wait Is Over","date":"June 18, 2026","format":false,"excerpt":"R-Type Tactics I \u2022 II Cosmos launches today on PS5, PS4, Xbox Series X|S, Nintendo Switch 2, Switch, and PC \u2014 bringing the first-ever English release of the 2009 sequel, both games rebuilt from scratch in Unreal Engine 5.","rel":"","context":"In &quot;Game News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/06\/r-type-tactics-i-ii-cosmos-2026-scaled.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5078,"url":"https:\/\/www.gametrader.sg\/blog\/xbox-layoffs-3200-five-studios-2026\/","url_meta":{"origin":5343,"position":2},"title":"Xbox to Lay Off 3,200 Employees and Divest Five Studios","date":"July 6, 2026","format":false,"excerpt":"Xbox CEO Asha Sharma announces 3,200 job cuts over FY2027 and five studios departing \u2014 including Ninja Theory, Double Fine, and Compulsion Games \u2014 in the biggest Xbox restructure of 2026.","rel":"","context":"In &quot;Game Industry News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/07\/xbox-reset-2026.jpg?fit=1200%2C682&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4092,"url":"https:\/\/www.gametrader.sg\/blog\/lords-of-the-fallen-ii-delayed-q1-2027\/","url_meta":{"origin":5343,"position":3},"title":"Lords of the Fallen II Delayed to Q1 2027 \u2014 GTA VI Among the Reasons","date":"June 24, 2026","format":false,"excerpt":"Hexworks and CI Games have pushed Lords of the Fallen II to Q1 2027, citing the need for more polish time \u2014 and being refreshingly candid about the near-impossible task of competing with GTA VI over the holidays.","rel":"","context":"In &quot;Game Industry News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/06\/lords-of-the-fallen-ii-delay-2027.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3692,"url":"https:\/\/www.gametrader.sg\/blog\/sao-echoes-of-aincrad-demo-june-2026\/","url_meta":{"origin":5343,"position":4},"title":"Echoes of Aincrad Free Demo Out Now \u2014 Save Data Carries Over","date":"June 16, 2026","format":false,"excerpt":"The free SAO Echoes of Aincrad demo is live today on PS5, Xbox Series, and Steam. Your save data carries to the full game, out 9 July 2026.","rel":"","context":"In &quot;Game News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/06\/eoa-header.jpg?fit=1200%2C406&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5016,"url":"https:\/\/www.gametrader.sg\/blog\/sao-echoes-of-aincrad-july-2026\/","url_meta":{"origin":5343,"position":5},"title":"SAO Echoes of Aincrad Launches 9 July on PS5 and PC","date":"July 6, 2026","format":false,"excerpt":"Sword Art Online's new action RPG Echoes of Aincrad drops 9 July on PS5 and Xbox \u2014 create your own character and survive Aincrad alongside Kirito and Asuna.","rel":"","context":"In &quot;Game News&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.gametrader.sg\/blog\/wp-content\/uploads\/2026\/07\/sao-echoes-of-aincrad-header.jpg?fit=460%2C215&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/posts\/5343"}],"collection":[{"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/comments?post=5343"}],"version-history":[{"count":0,"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/posts\/5343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/media\/5339"}],"wp:attachment":[{"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/media?parent=5343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/categories?post=5343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gametrader.sg\/blog\/wp-json\/wp\/v2\/tags?post=5343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}