On March 11, 2025, Windows Central reported that Obsidian Entertainment has shelved plans for an Avowed sequel to redirect resources toward a new Fallout game, led by Fallout: New Vegas director Josh Sawyer. The decision reflects Microsoft’s strategic pivot to capitalize on the Fallout franchise’s renewed popularity following the hit Amazon TV series.

The Shift: A New Fallout Takes Priority

Obsidian’s Avowed sequel, which was in early pre-production, has been paused indefinitely. The studio is now prioritizing a new Fallout title, with Sawyer at the helm. This isn’t a remaster or a spin-off; it’s a full-fledged new entry in the mainline series. While Microsoft hasn’t officially confirmed the report, multiple sources familiar with the studio’s plans corroborated the shift. The news comes just a month after Avowed’s launch on February 18, 2025, which earned positive reviews but apparently didn’t meet the internal sales thresholds required to greenlight an immediate sequel.

The timing is crucial. Avowed wasn’t a flop, but it wasn’t a breakout hit either. Industry analyst Mat Piscatella noted that while Avowed had a solid launch on Steam and Xbox, its engagement faded faster than Microsoft had hoped. In the brutally competitive RPG market, a sequel needs more than critical acclaim—it needs sustained momentum. Without that, Microsoft sees a bigger opportunity elsewhere.

What It Means for You

For gamers on Windows PC and Xbox, this news cuts two ways. If you’re a Fallout fan, you can look forward to a new installment from the director of the beloved New Vegas, potentially bringing the series back to its Western RPG roots. Sawyer’s involvement signals a return to the deep narrative and player choice that defined the 2010 classic. The new game is likely years away, but the mere prospect is enough to reignite the fanbase.

However, if you were hoping for more from the world of Eora, you’ll have to wait—perhaps indefinitely. The original Avowed will still receive post-launch support, including bug fixes and some small content updates, but a narrative expansion or major DLC is now unlikely. For players who invested time in Avowed’s world, this feels like a missed opportunity. The game ended with dangling threads that begged for continuation; without a sequel, those stories may never reach a conclusion.

Xbox Game Pass subscribers should watch this space. A new Fallout would almost certainly launch day one on the service, reinforcing Microsoft’s strategy of leaning on established IPs to drive subscriptions. The Fallout TV show’s second season, expected later in 2025, will only amplify interest. For Xbox, a hit Fallout game could be a system seller—and a Game Pass banner title. Conversely, Avowed’s tepid performance might make Microsoft even more cautious about greenlighting new RPG IPs, instead favoring franchise plays.

How We Got Here

Obsidian’s journey to this point is winding. Founded by ex-Black Isle developers, the studio made its name with Star Wars Knights of the Old Republic II and Neverwinter Nights 2 before releasing the cult hit Fallout: New Vegas in 2010. That game, developed under Bethesda’s wing, proved that a third-party studio could capture the essence of Fallout better than Bethesda itself, in many fans’ eyes. After a long period of independence and financial struggles, Microsoft acquired Obsidian in 2018, promising resources for the team’s ambitious ideas.

Under Microsoft, Obsidian delivered a string of smaller projects—Grounded, a survival game, and Pentiment, a narrative adventure—while also working on Avowed, its first AAA RPG. Avowed launched on February 18, 2025, to generally favorable reviews, praising its combat and world but criticizing its limited scope compared to Skyrim. Meanwhile, the Fallout franchise was experiencing a renaissance. Amazon’s Fallout TV series, which debuted in April 2024, drove millions of new players to Fallout 4 and Fallout 76, spiking sales and player counts across all platforms. The first season won critical acclaim and a loyal audience, and a second season is in production.

With Bethesda Game Studios occupied by Starfield updates and The Elder Scrolls VI, Microsoft faced a dilemma. The Fallout IP was hot, but the main custodian wasn’t available. Tapping Obsidian—with its proven Fallout pedigree under Sawyer—was a natural move. According to Windows Central’s sources, Microsoft approached Obsidian shortly after Avowed’s release with the offer to take on a new Fallout, and the studio accepted, effectively shelving the Avowed sequel in the process.

This isn’t the first time a studio’s production pipeline has been rerouted by corporate strategy. Sony, for example, has repeatedly shifted studios like Naughty Dog and Guerrilla between new IP and franchise work based on market winds. For Obsidian, the pivot underscores a hard truth: in today’s consolidated industry, even a studio with a creative legacy must follow the money.

What to Do Now

If you haven’t played Avowed yet, it’s available on Xbox Series X|S, Windows PC, and via Game Pass Ultimate. It’s a solid 30-40 hour RPG, and now might be the ideal time to dive in, knowing that a sequel isn’t coming soon. For those already finished, there’s little to do except wait and see—the planned post-launch roadmap is likely to be scaled back, so don’t expect large expansions.

Fallout fans should temper expectations. Sawyer’s project is in early development; even with pre-production work, a full new Fallout game typically takes 4–5 years. A realistic release window would be 2028–2029, and that’s optimistic. You won’t see gameplay at this June’s Xbox Showcase, but a brief teaser or logo reveal is possible to build hype. Keep an eye on official Obsidian and Xbox channels for any hiring news—a ramp-up in job listings for RPG designers would be the clearest sign the project is moving forward.

If you’re worried about the future of Avowed’s universe, make your voice heard. Engage with Obsidian on social media, post on forums, and share your appreciation. While that may not revive the sequel, it reinforces fan interest for potential future projects. Also, watch for mod support—if Microsoft and Obsidian release official mod tools (as Bethesda games do), the community might extend Avowed’s life even without a sequel.

Looking Ahead

Josh Sawyer’s Fallout could be the shot of vigor the series needs. His team’s understanding of tone, moral ambiguity, and player agency is unmatched. But a game far on the horizon doesn’t help Microsoft’s 2025 or 2026 lineup. The company faces a gap in blockbuster RPGs until Fable (now scheduled for 2025) and possibly The Outer Worlds 2 (also 2025). In the meantime, Avowed’s pause may be a signal that Microsoft is re-evaluating its first-party portfolio for efficiency over experimentation.

For players, this is a moment of mixed fortune. You lose the immediate future of a promising new world but gain the return of a legendary director to a beloved franchise. The next year’s Xbox showcase will reveal which path Microsoft is truly betting on.