Avowed 2 Shakes Up Obsidian's Future as Fallout Rumors Stir Again

As new insider information about the studio's goals, canceled plans, and the changing directions of several highly anticipated projects comes out, Obsidian Entertainment's future seems to be changing in a big way. Sources say that a recent interview on X with Chris Avellone, who used to be the founder of Obsidian, got a lot of attention when he shared some surprising information about the studio's plans.

Avellone said that Obsidian does not have any plans for The Outer Worlds 3 at this time, but they are working on DLC for The Outer Worlds 2. Instead, the studio is moving forward with Avowed 2, marking a surprising prioritization of the fantasy IP over the highly favored sci-fi series.

People asked the studio if they were interested in making another Fallout game, which led to the conversation. Those who know Avellone said that in response, he said that the change in attitude toward Fallout development might not be voluntary. His comment suggested that the company could be constrained by circumstances beyond its control, preventing work on the franchise despite developers' enthusiasm.

When compared to Obsidian's unusually busy 2025, which saw the release of Avowed, Grounded 2 (in early access), and The Outer Worlds 2, the situation became more interesting.

Adding to these changes was the fact that Carrie Patel, Avowed's game director, quit. Sources say Patel left Obsidian after working there for almost twelve years and joined Netflix's Night School Studio soon after Avowed came out. Her leadership had extended across beloved titles such as Pillars of Eternity and The Outer Worlds, making her exit particularly notable. This means that Avowed 2 will have a new director as it starts to be made.

Obsidian's plans for the future, laid out in a breakdown from June 2025, show a big push. According to insider Jez Corden, the company is targeting seven games in seven years, with the release of The Outer Worlds 2 marking the fourth entry in that plan. With Avowed 2 successfully positioned as the fifth, attention has turned to the mysterious sixth and seventh titles that may round out the lineup.

Comparisons between Avowed and The Outer Worlds 2 have shown how the studio's goals are changing even more. The first Avowed got mixed but good reviews, with most of the good reviews being about the fighting system. However, it was also regarded as lacking memorability beyond that. Meanwhile, The Outer Worlds 2 earned a noticeably stronger critical reception, bolstered by the participation of Tim Cain, the widely known creator of the Fallout franchise.

Cain's ongoing advising role at Obsidian has fueled speculation about future projects. According to the sources, Cain stays actively involved with Obsidian and is providing feedback on upcoming titles, including a rumored 2026 post-apocalyptic game. Colt Eastwood on YouTube said that this unknown title might even be a new Fallout game, but most people don't trust him as much as Avellone does.

For now, Avellone has not confirmed Obsidian's participation in any Fallout development, only noting that the studio's past pitches for Fallout spinoffs had been rejected by Bethesda. It's still not clear if this position has changed behind the scenes.

With more attention on Avowed 2, the franchise is back to how it was meant to be. Sources say that Avowed was first thought of as Obsidian's answer to The Elder Scrolls: a big fantasy RPG with lots of room to explore and a huge world. The first game moved away from this goal and made the experience smaller, but the sequel might try to get back to that big picture.

With a new director and help from seasoned professionals like Tim Cain, Avowed 2 might aim to combine the improved combat of the first game with the larger world-building fans have been wanting since the beginning.

This plan is like the jump from The Outer Worlds to its follow-up. The original Outer Worlds had a small budget and scope, which prevented the team from implementing all their ideas. But The Outer Worlds 2 greatly expanded the world and story, which was the creative goal the game's creators had always had in mind. If the same method is used for Avowed 2, the series may finally give players the open, exploratory Elder Scrolls-style experience that was originally planned.

This also makes me wonder about the last two games that need to be made to finish the "seven games in seven years" plan. The suspected post-apocalyptic game set in 2026 is even more interesting now that The Outer Worlds 3 doesn't seem to be in the works and Avowed 2 has been confirmed internally. It could make a big difference in Xbox's RPG selection if it turns out to be a Fallout project. If not, fans may be seeing the start of yet another new Obsidian IP.

The company has shown before that it is willing to start from scratch and build whole worlds.

The internal workings of these decisions are still kept secret, but Avellone's comments shed a rare light on the uncertainty and limits that developers sometimes face. People close to him say that his comment that Obsidian would not want to work on Fallout unless they were pushed to has led to more rumors. As work continues and official news comes out, it will probably become easier to see who will be on the final lineup.

Obsidian's fast-paced release schedule, leadership changes, and conflicting stories from inside the studio have made people curious about what they will do next. With Avowed 2 moving forward, a possible post-apocalyptic game on the horizon, and hints of deeper negotiations going on behind the scenes, the next few years could be the start of a whole new era for one of Xbox's most productive RPG companies.

As the schedule moves toward the sixth and seventh games, fans are left to wonder: what world will Obsidian build next? And could a long-awaited return to Fallout finally be in the plans?