Xbox’s Shift Leaves a Promising RPG Series in the Shadows

Microsoft announced a major restructuring that will cut 3,200 jobs across its gaming division by next summer. The move has already impacted several studios, including the creators of Doom and Obsidian Entertainment. After the first wave of layoffs, Obsidian lost a quarter of its staff and was asked to refocus on developing a new Fallout title, dropping work on a planned sequel to the 2025 game Avowed.

Uncertain Path Forward

• Some insiders speculate that the team may keep working on Avowed in secret, hoping to pitch it later.
• The current priority appears elsewhere, leaving fans disappointed that a sequel might never see light after Avowed laid solid groundwork for its world.

Avowed’s Rich Background

• Obsidian’s long‑running Pillars of Eternity universe was introduced in 2015.
• The setting is a high‑fantasy world called Eora featuring supernatural events and religious tension.
• Instead of real gods, “artificial” deities were created by an ancient race to enforce moral order—an idea that helped the original game win praise and revive interest in classic computer role‑playing games.

Recent History

• After Microsoft bought Obsidian in 2018, the studio shifted to projects like The Outer Worlds and Grounded.
• Avowed finally returned in 2025, telling a new story about a deadly plague in Eora.
• While some expected an expansive open world similar to Elder Scrolls, the game offered a more focused experience that still showcased the studio’s strengths.

Strategic Implications

• The decision to move Obsidian away from this IP may have seemed logical, as role‑playing games are niche on Xbox consoles.
• Yet the timing is questionable; in 2023, Larian Studios released Baldur’s Gate 3, proving there is still strong demand for immersive fantasy RPGs.
• Few companies can build such complex worlds, and Obsidian had the talent to do it.

Microsoft’s Direction

• Instead of chasing that opportunity, Microsoft has directed the team toward a Fallout project, which may not align with current market trends.
• This shift reflects broader uncertainty about Microsoft’s gaming strategy.
• The Pillars of Eternity universe could become a valuable asset if used for a sequel or a new role‑playing title, but that potential is currently untapped.