Despite reports that Avowed 2 was canceled following the recent Microsoft and Xbox “reset,” it is now claimed that developer Obsidian Entertainment still has a small team working on it in the hope that it will eventually release.

- Recent reports suggested Avowed 2 was canceled during a broader Microsoft and Xbox restructuring.
- Reliable claims indicate developer Obsidian Entertainment has maintained a small team on the project.
- The studio continues development with the goal of eventually releasing the game.
The fate of Obsidian Entertainment’s Avowed sequel is not as certain as we thought just a few days ago. Initial reports indicated that Microsoft cancelled Avowed 2 to move the studio’s resources toward pre-production on a new Fallout game.
However, the internal development status contradicts those definitive cancellation claims. According to reporter Jason Schreier, Avowed 2 is much further along in development than most realize.
👉 READ ALSO: Ehat We Know About the Cancellation of Avowed 2
Is Avowed 2 Still in Development at Obsidian?
Yes, a skeleton crew at Obsidian Entertainment is still actively working on Avowed 2. Despite the project being formally cancelled to move resources toward a new Fallout game, a dedicated team continues development while waiting for pre-production on the Fallout project to scale up.
According to Jason Schreier, Avowed 2 is much further along in development than most realize, and the remaining Obsidian team hopes to get the build so close to completion that Xbox will ultimately approve it, noting “it won’t cost that much more to finish it.”
This unusual situation stems from recent Microsoft layoffs, which saw Obsidian lose a quarter of its staff. The remaining developers were ordered to focus on established intellectual properties.
However, because the sequel was already deep into production, completely abandoning the progress was deemed internally wasteful.
What is the Current Status vs. Original Release Plan?
The current status of Avowed 2 is an unsanctioned, ongoing project operating in the background, whereas the original release plan targeted a full-scale launch within the next year.
Microsoft’s sweeping layoffs and cancellations across Xbox forced Obsidian to dramatically alter its internal roadmap to prioritize the Fallout universe.
Obsidian is now operating in a gray area, maintaining the fantasy RPG’s codebase without an official marketing or release schedule.
Will Xbox Approve the Final Build?
It remains entirely unconfirmed whether Xbox will officially approve and fund the final build of Avowed 2. The outcome depends heavily on whether Obsidian can present a nearly finished product that requires minimal financial investment to push across the finish line.
Currently, the game has no official release date, and pre-orders are nonexistent. Players hoping to see the RPG will have to wait for Microsoft to make a final public determination on the project’s true fate.
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