Updated
Updated · Engadget · Jul 8
Obsidian Cancels Avowed Sequel, Cuts 52 Jobs as Microsoft Pushes New Fallout Game
Updated
Updated · Engadget · Jul 8

Obsidian Cancels Avowed Sequel, Cuts 52 Jobs as Microsoft Pushes New Fallout Game

3 articles · Updated · Engadget · Jul 8

Summary

  • Obsidian is scrapping multiple projects — including an Avowed sequel — and redirecting the studio to a new Fallout game, with Fallout: New Vegas director Josh Sawyer reportedly leading development.
  • 52 layoffs at Obsidian, about a quarter of its workforce, accompany the shift; WARN notices show 43 Irvine office staff and nine California remote employees are being cut.
  • Microsoft's broader gaming reset is driving the move, as Xbox narrows studio output toward proven franchises such as Fallout, Doom, Wolfenstein and The Elder Scrolls.
  • The cuts extend beyond Obsidian: id Software is reportedly laying off more than 90 employees, while Microsoft is eliminating another 3,200 jobs outside its gaming division.
  • Fallout has gained fresh commercial weight from Amazon's hit TV adaptation, making a new entry more urgent as Fallout 76 remains the franchise's latest release from 2018.

Insights

After laying off a quarter of its staff, can Obsidian deliver the next great Fallout game fans expect?
Is Xbox's historic 'reset' a desperate move to save a failing business or a bold strategy for future dominance?