Chris Avellone Says Obsidian Has Paused Most Projects, Including Shadowrun, but Avowed 2 Is Still Alive

Former Obsidian Entertainment creative director Chris Avellone has shared new details about the studio's internal restructuring following Microsoft's recent Xbox layoffs. According to Avellone, nearly every unannounced project at Obsidian has been placed on hold, including a rumored Shadowrun RPG reportedly led by John Gonzalez, the lead writer of Fallout: New Vegas. However, Avellone pushed back against reports claiming that Avowed 2 had been canceled, stating that a small team is still working on the project in hopes of presenting it again to Xbox leadership. These comments have not been officially confirmed by Microsoft or Obsidian.

According to Avellone, Obsidian recently reevaluated its entire portfolio after Microsoft's large-scale restructuring. While projects such as Grounded 2 and planned The Outer Worlds 2 expansions continue to move forward, most other initiatives have reportedly been paused. The rumored Shadowrun project is said to be among those affected, although no official announcement about the game has ever been made.

The comments differ from earlier reports suggesting that Avowed 2 had already been canceled. Avellone claims the sequel remains in development on a limited scale and could still receive approval if it is successfully re-pitched. At the same time, multiple reports indicate that Obsidian is beginning work on a new Fallout title under Josh Sawyer, reflecting Microsoft's renewed focus on its biggest franchises following the recent Xbox restructuring.

For now, neither Microsoft nor Obsidian Entertainment has officially commented on the status of these projects. Until the studio provides an update, the reported pause of the Shadowrun project and the future of Avowed 2 should be viewed as unconfirmed, despite Avellone's statements and the growing number of industry reports discussing Obsidian's changing priorities.