According to a report from Bloomberg, Obsidian has cancelled several projects, including an Avowed sequel, as part of the recent Xbox layoffs. Now, the studio will instead focus on a new Fallout game led by Josh Sawyer, the creator of Fallout: New Vegas.
Obsidian has majorly restructured its internal operations in the wake of the layoffs, with Xbox having cut a quarter of its workforce. Due to the restructuring, the company cancelled several games. One of the cancelled projects, aside from an Avowed sequel, was “a roleplaying game that was similar structurally and thematically to Fallout but was not part of the franchise,” according to Bloomberg. Now, he will lead a new Fallout game.
Earlier this week, Microsoft has laid off 4800 employees, 1600 of which were part of Xbox. Additionally, Xbox has sold Ninja Theory and Undead Labs, and given Double Fine and Compulsion Games back to its original owners. Double Fine is now once again led by Tim Schafer, while Guillaume Provost leads Compulsion Games. Both companies have now gone fully independent.
Ninja Theory and Undead Labs are still looking for a buyer, however, both Senua and State of Decay 3 will still ship. Microsoft is still planning to “eliminate a total of around 20 percent of Xbox jobs by the end of the financial year in July 2027,” according to The Verge. Further, ZeniMax will go through restructuring that places more focus on Fallout, The Elder Scrolls, Doom, Quake, and Wolfenstein. The announcement comes in the wake of a growing shift in the gaming industry, as PlayStation recently announced its choice to end production of physical discs, while reports began to circulate that Xbox is testing a “disc-to-digital” feature, the former of which in particular has been panned by both critics and fans alike. Only time will tell how these cuts will affect Xbox in the future.
