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Microsoft’s Xbox to Shift Obsidian Studio to New ‘Fallout’ Video Game

Microsoft is pivoting Obsidian Entertainment to develop a new Fallout game following the cancellation of Avowed 2.

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261890Jul 8 20:29Jul 8 21:29 UTC

The brief

Microsoft's Xbox division is shifting Obsidian Studio's focus toward a new Fallout title. This pivot comes alongside the cancellation of the Avowed sequel.

Coverage from Bloomberg, The Verge, Forbes, and Kotaku emphasizes this strategic reset. Reports from Windows Central further indicate that Obsidian has lost 25% of its developers due to Microsoft layoffs, while MMORPG.com notes that Id Software has also been affected.

Future developments center on the production of the new Fallout game following the reported cuts and the termination of Avowed 2.

Synthesized by Newsylist from the headlines below under a strict no-invention contract. ✓ fact-checked: all claims supported by sources Updated just now.

Quick answers

What project was cancelled at Obsidian?

According to coverage from IGN, Forbes, and Kotaku, Avowed 2 has been cancelled.

How many developers did Obsidian lose?

Windows Central reports that Obsidian lost 25% of its developers to Microsoft's layoffs.

What other studios were mentioned in the context of Xbox cuts?

MMORPG.com mentions that Id Software was gutted and that Blizzard employees are awaiting further information.

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