We at NerdLeaks are tracking a developing rumor that Obsidian Entertainment may not have completely abandoned Avowed 2 despite reports that the project was canceled. Per Insider Gaming, a small team allegedly remains on the sequel, hoping to get it far enough along that XBOX might greenlight finishing and releasing it.
What Was Reported
Per Insider Gaming, initial reporting said Obsidian Entertainment was shifting focus as a result of XBOX's "big reset" and that the studio would begin concentrating on a new Fallout project. At that time, it was reported that Microsoft had canceled plans for Avowed to receive a sequel.
However, Insider Gaming says new information surfaced shortly after that claim. The outlet reports that even though Avowed 2 is labeled as canceled, "a small team that was working on Avowed 2 ... is still going to keep working on Avowed 2, even though it is canceled," per reporting cited by the site. That team is reportedly continuing work while waiting for other projects—like Fallout—to be ready.
Key Points Reported
- Obsidian Entertainment allegedly shifted focus toward a new Fallout project after XBOX's reset, per Insider Gaming.
- Microsoft reportedly canceled plans for an Avowed sequel.
- Avowed 2 allegedly still has a small team working on it despite the cancellation, according to the new information.
The Source & Credibility
Insider Gaming credits the new information to Jason Schreier, who reportedly broke the earlier news about Avowed's sequel being canceled. Insider Gaming says Schreier discussed the situation in a YouTube video and conveyed that the sequel might be farther along in development than many expect.
Schreier is quoted as saying the team hopes to push the build so close to finished that XBOX will review it and decide "Okay, yeah, you can finish and release this." He also suggested it "won't cost that much more to finish it."
Take this with a pinch of salt: the reporting relies on claims attributed to a single named industry reporter and a video discussion rather than an official statement from Obsidian Entertainment or Microsoft. We’re treating the information as a rumor until either company confirms any change in status.
What It Could Mean
If true, the scenario described by Insider Gaming and Jason Schreier suggests a few possibilities:
- Avowed 2 being "planned farther along" could make a revival administratively or financially easier for Microsoft to approve, if the remaining work is minor.
- A skeleton team keeping momentum could preserve assets and development knowledge, potentially improving the odds of the project being "uncanceled" at a later date.
- The move to redeploy much of the studio’s focus to a new Fallout project would still indicate priority shifts within Obsidian Entertainment, even if some work continues on Avowed 2.
Again, this hinges on the claim that the sequel was already further along in development than expected. If that assessment is accurate, it explains why a small team might continue to push a build in hopes that the higher-ups will reconsider.
Why This Matters
This rumor matters for a few clear reasons. First, Avowed itself is not an obscure title: Avowed was released on February 18, 2025, for all XBOX consoles and is also playable on PlayStation and PC. The original carries an 80 on Metacritic, with several reviews reportedly giving it a perfect score—so a sequel would likely attract attention.
Second, the report reflects broader turbulence: Insider Gaming frames the developments as tied to XBOX's reset and studio reassignments to a new Fallout project. If Avowed 2 is genuinely in a state where a small push could secure a release, it would be a notable example of how rapidly decisions are shifting in the current landscape.
Take this with a pinch of salt, but if Avowed 2 really is being quietly advanced by a small team, fans may have reason to stay alert. We’ll keep digging and will report any confirmations or denials from Obsidian Entertainment or Microsoft as they arrive.
