Obsidian has reportedly canceled multiple projects including an Avowed sequel as a part of the restructuring

Obsidian Entertainment has canceled multiple projects including a sequel to Avowed and will begin work on a new game in the Fallout franchise as per a report from Bloomberg.

The cancellations reportedly come as a part of the restructuring that Xbox has been doing with major layoffs, studios leaving, and 3200 reductions planned throughout FY27 including 1600 layoffs already done as of this writing. The Bloomberg report also mentions Josh Sawyer will be leading the new title in the Fallout universe after he was reportedly directing an RPG that was similar to Fallout, but not a part of the franchise. 

Josh Sawyer's most-recent project is Pentiment. Avowed is now available on PS5, Xbox, and PC. Pentiment is now available on PS5, Xbox, Switch, and PC platforms.