In a surprising revelation that has the gaming community buzzing, Chris Avellone, co-founder of Obsidian Entertainment, just confirmed that the studio is working on Avowed 2 while apparently shelving plans for The Outer Worlds 3. This news comes just days after The Outer Worlds 2 launched, and it raises some serious questions about where Obsidian is placing its bets for the future.
What Chris Avellone Actually Said
Taking to X (formerly Twitter) on November 6, 2025, Avellone posted a straightforward statement that sent shockwaves through the RPG community. He wrote that aside from DLC plans for The Outer Worlds 2, Obsidian is making no plans for The Outer Worlds 3, but they are doing Avowed 2. For context, Avellone left Obsidian back in 2015 due to conflicts with management, but he clearly still has insider connections feeding him information.
The timing of this leak is particularly interesting. The Outer Worlds 2 literally just came out a week before Avellone’s post, and studios typically don’t discuss sequel plans for existing franchises this quickly unless something significant is shifting internally. The fact that he’s hearing about Avowed 2 development while The Outer Worlds 3 gets quietly canceled suggests Obsidian is making some big strategic decisions about which universes deserve continued investment.
Why The Outer Worlds Is Getting Shelved
The Outer Worlds franchise has had a complicated journey. The first game sold five million copies and was generally well-received as a spiritual successor to Fallout: New Vegas with its dark humor and corporate dystopia themes. However, The Outer Worlds 2 appears to be underperforming expectations based on early indicators. Pre-order numbers reportedly flatlined, and the game isn’t generating the same buzz as its predecessor did back in 2019.
Obsidian will still support The Outer Worlds 2 with DLC content, which isn’t expected to finish rolling out until at least late 2026. That gives the studio plenty of time to see if the game gains traction through word of mouth or deep discounts. But the decision to not greenlight a third installment suggests they’re reading the room and recognizing that maybe this particular sci-fi universe doesn’t have the legs they hoped for.
The Case for Avowed 2
Avowed launched back in February 2025 to mixed commercial results. While it received generally favorable reviews from critics with a Metacritic score around 77-80 depending on platform, the player numbers told a different story. Steam concurrent players peaked at just 19,198 in February, and by November the game was averaging only 200 players daily. Those aren’t exactly blockbuster numbers for a major Xbox Game Studios release.
So why would Obsidian commit to a sequel for a game that underperformed while canceling plans for a franchise with better sales history? The answer probably lies in potential rather than past performance. Avowed is set in Eora, the same high-fantasy world as Pillars of Eternity, which means Obsidian has years of established lore, world-building, and creative infrastructure to draw from. Game Director Carrie Patel even hinted at wanting to make more content in this world back in February, noting that now that they’ve built the team strength and muscle memory around the gameplay, it would be a waste not to capitalize on that momentum.
Learning from the First Game
Avowed had a rocky development cycle. The game was originally conceived as an online multiplayer experience pitched as a mix of Destiny and Skyrim when Microsoft was acquiring Obsidian in 2018. By January 2020, the studio had completely pivoted to focus on a single-player narrative experience. The game also went through two major overhauls under Patel’s leadership, including replacing the open-world setting with zones and fully committing to the Pillars of Eternity universe.
All those growing pains mean Obsidian learned a lot of expensive lessons during Avowed’s development. A sequel would allow them to skip past those early mistakes and hit the ground running with a clearer vision. They already have the combat systems, enemy skeletons, art style, and narrative framework established. Avowed 2 could theoretically be developed faster and more efficiently than the first game, which spent years figuring out what it wanted to be.
Microsoft’s Role in All This
Obsidian is owned by Microsoft’s Xbox Game Studios, which gives them the financial stability to take creative risks but also means they answer to corporate overlords who care about metrics and Game Pass engagement. Microsoft clearly sees value in Obsidian as a studio, especially after they delivered three games in 2025 alone. Grounded, Pentiment, and various other projects have kept the studio busy and productive.
The decision to pursue Avowed 2 over The Outer Worlds 3 likely has Microsoft’s fingerprints all over it. Fantasy RPGs have been hot ever since Baldur’s Gate 3 proved there’s a massive audience hungry for deep, choice-driven adventures in magical worlds. The Elder Scrolls VI is still years away, which leaves a vacuum in the market that Avowed could potentially fill if executed properly. Meanwhile, sci-fi RPGs like The Outer Worlds exist in a more crowded space with less obvious monetization potential.
What Fans Are Saying
The response to Avellone’s revelation has been mixed. Some players who loved Avowed are thrilled at the prospect of returning to Eora with improvements and a bigger scope. The prevailing sentiment among these fans is that the bigger and better approach should really work for a sequel, especially if Obsidian can address criticisms about the first game’s relatively small zones and limited player counts.
On the flip side, fans of The Outer Worlds are understandably disappointed. Many felt the franchise had room to grow and that Obsidian was just hitting its stride with the dystopian corporate satire that made the first game memorable. There’s also concern that Obsidian is chasing trends rather than following their creative instincts, especially given how much buzz The Outer Worlds generated back in 2019 as an alternative to Bethesda’s Fallout games.
What This Means for Obsidian’s Future
Obsidian is one of the few studios that has successfully maintained a consistent release schedule without massive delays or public meltdowns. They’ve delivered games on time and within scope, which is increasingly rare in the modern gaming industry. The fact that Microsoft is letting them continue making creative decisions about which IPs to pursue suggests a healthy relationship between publisher and developer.
However, this news also reveals the harsh reality of modern game development. Even a franchise that sold five million copies can get put on ice if the sequel doesn’t meet expectations. Meanwhile, a game that struggled to maintain 20,000 concurrent players at launch can get greenlit for a sequel if the corporate calculus suggests there’s untapped potential. It’s not always about what performed best yesterday – sometimes it’s about what fits the strategy for tomorrow.
FAQs
Is Avowed 2 officially confirmed by Obsidian Entertainment?
No, Obsidian has not officially announced Avowed 2. The information comes from Chris Avellone, a co-founder who left the studio in 2015 but apparently still has insider connections.
Will there be a The Outer Worlds 3?
According to Chris Avellone, Obsidian currently has no plans for The Outer Worlds 3, though they will continue supporting The Outer Worlds 2 with DLC content through at least late 2026.
When did Avowed come out?
Avowed was released on February 18, 2025, for Xbox Series X/S and Windows PC as part of Xbox Game Pass.
How well did Avowed sell?
Avowed had modest commercial performance with Steam concurrent players peaking at around 19,198 at launch and dropping to approximately 200 daily players by November 2025.
Who is Chris Avellone?
Chris Avellone is a legendary RPG designer and writer who co-founded Obsidian Entertainment and worked on classics like Planescape: Torment, Star Wars: Knights of the Old Republic II, and Fallout: New Vegas before leaving the studio in 2015.
Why would Obsidian make a sequel to a game that underperformed?
Avowed is set in the established Pillars of Eternity universe, giving Obsidian years of lore and world-building to draw from. The studio has also already developed the technical framework, allowing for more efficient sequel development.
What is Avowed about?
Avowed is an action RPG set in Eora, the same fantasy universe as Pillars of Eternity. It features first-person and third-person combat with magic, melee weapons, and firearms in a choice-driven narrative experience.
When did The Outer Worlds 2 come out?
The Outer Worlds 2 was released in late October 2025, approximately one week before Chris Avellone’s post about Obsidian’s future plans.
Conclusion
The gaming industry is full of surprises, and Obsidian’s reported decision to pursue Avowed 2 while shelving The Outer Worlds 3 is a perfect example of how unpredictable franchise planning can be. While The Outer Worlds seemed like the safer bet based on sales history, Obsidian is apparently betting on the long-term potential of their fantasy universe over their sci-fi satire. Whether this gamble pays off depends entirely on how well they can leverage the lessons learned from the first Avowed and deliver a sequel that captures the imagination of RPG fans. For now, all we can do is wait for official confirmation and hope that whatever Obsidian is cooking up next lives up to their legendary reputation for crafting memorable role-playing experiences.