As Microsoft continues hacking away at Xbox’s studios as part of thousands of layoffs, the studios that are still under the company’s umbrella are finding out what’s next. Obsidian, the developer behind Avowed and The Outer Worlds, is, according to a new report from Bloomberg, canceling a planned Avowed sequel and pivoting to a new Fallout game.
According to Bloomberg’s sources, the Irvine studio has laid off “around a quarter” of its workforce and canceled an Avowed sequel alongside “other unannounced projects.” Now, studio design director Josh Sawyer will reportedly be leading the team on a new Fallout game, which will mark the studio’s return to the post-apocalyptic franchise after releasing the acclaimed Fallout: New Vegas back in 2010. However, Bloomberg‘s sources say the strategy is “in flux” and could change.
This is a developing story…

