Avowed 2 Isn't Dead After All? New Rumor Claims Obsidian Is Still Fighting for the Sequel

Just days after reports claimed Avowed 2 had been canceled as part of Microsoft's Xbox restructuring, a new rumor suggests the sequel may still have a future. According to industry veteran Chris Avellone, developers at Obsidian Entertainment are reportedly trying to re-pitch the project internally, hoping to convince Xbox leadership to resume full development rather than abandon the RPG entirely.

The new claims follow earlier reports that Microsoft shifted Obsidian's priorities toward a new Fallout project after recent layoffs and internal restructuring. However, Avellone says the situation is more complicated than initial rumors suggested. According to people he claims are still working at the studio, Avowed 2 has not been permanently shelved, and discussions about reviving the project are ongoing. No official confirmation has been provided by either Obsidian or Xbox.

The uncertainty comes during a turbulent period for Obsidian. Recent reports indicate the studio is continuing support for Grounded 2 and The Outer Worlds 2, while also allocating resources to a new Fallout game reportedly led by Josh Sawyer. Earlier reports suggested that Avowed 2 was one of several projects affected by Microsoft's restructuring, but the latest information indicates the sequel could still return if a revised proposal receives approval.

For now, fans should treat the reports as rumors rather than confirmed news. While multiple sources suggest that Obsidian has not completely abandoned Avowed 2, neither Microsoft nor the studio has officially announced that development has resumed. Even so, the latest reports offer hope that the Pillars of Eternity universe may yet receive another major RPG in the future.