Avowed 2 Status Update: What Chris Avellone Revealed About Obsidian's Fight to Revive the Sequel
Saturday, July 11, 2026The gaming world was rocked in July 2026 when reports surfaced that Xbox had cancelled Avowed 2 as part of a broader restructuring under new CEO Asha Sharma. However, the situation is more nuanced than a simple cancellation, and Chris Avellone, revered RPG designer and former Obsidian Entertainment co-founder, has provided crucial insight into what's really happening behind the scenes.
According to Avellone, Obsidian is quietly fighting to revive the sequel, with a small team continuing development in hopes of eventually re-pitching the game to Xbox. Here's everything we know about the current status of Avowed 2.
Timeline of Events: How We Got Here
| Date | Event |
|---|---|
| November 2025 | Chris Avellone first reports that Obsidian would work on Avowed 2 while dropping The Outer Worlds franchise |
| July 2026 | Xbox's "big reset" under new CEO Asha Sharma mandates cancellation of Avowed 2 while greenlighting a new Fallout game |
| July 10, 2026 | Chris Avellone reveals on X (Twitter) that Avowed 2 is still being worked on and will be "re-pitched" to Xbox |
| July 10, 2026 | Jason Schreier (Bloomberg) confirms Avellone's claims, noting a small team continues development |
What Chris Avellone Actually Said
In a series of posts on X (formerly Twitter), Chris Avellone provided direct insight from Obsidian employees about the current state of Avowed 2. Here are his key statements:
"Aside from other news, Obsidian employees appear to have been told all the company's projects were 're-evaluated' today. It seems Grounded is still going (mostly out-sourced in Eidos Montreal anyway, so no surprise), Outer Worlds 2 expansions still planned for now (1st one is Sept), and uh, despite reports, Avowed 2 is STILL being worked on (for now) in the hopes of being 're-pitched' (whatever that means)."
"They're still working on Avowed 2 as of today, according to folks at Obsidian. They're trying to 're-pitch' it when the dust settles, probably because so much work was already put into it."
Avellone also clarified that Avowed 2 has not been fully canceled, with Obsidian staff still hoping to pitch it to Xbox again in the future because significant pre-production work has already been completed.
Jason Schreier Confirms: The "Re-Pitch" Strategy Explained
Shortly after Avellone's statements, renowned gaming journalist Jason Schreier (Bloomberg) essentially backed up the claims in a YouTube video, providing additional context about Obsidian's strategy:
- "Obsidian actually have a small team that was working on Avowed 2 that is still going to keep working on Avowed 2 even though it is canceled"
- The team is working on it "while they wait for other projects like Fallout to be ready for them"
- "Maybe in hopes of getting it uncancelled"
- "Maybe it was actually farther along than I think people would expect for a sequel to a game that came out last year"
- "Their hope is perhaps that they'll get it so close to being finished that Xbox will look at it and say, 'Okay, yeah, you can finish and release this. It won't cost that much more to finish it.'"
This reveals a clever strategy: Obsidian is continuing development on Avowed 2 with a skeleton crew, betting that if they can get the game close to completion, Xbox will be more likely to approve its release since the additional investment required would be minimal.
What Does "Re-Pitching" Actually Mean?
The term "re-pitching" has become central to understanding Avowed 2's situation. Based on the available information, here's what it means in practice:
- Continued Development: Despite the official cancellation, a small team at Obsidian continues working on Avowed 2
- Strategic Patience: The team is working on the sequel while waiting for other projects (like the new Fallout game) to reach milestones
- Progress as Leverage: By advancing development further, Obsidian hopes to make the case that completing Avowed 2 would be cost-effective for Xbox
- Future Presentation: Once the game is sufficiently developed, Obsidian plans to present it to Xbox leadership again, hoping to reverse the cancellation decision
This approach suggests that Avowed 2 may be further along in development than many realize, potentially making it a more viable project than Xbox initially assessed during their restructuring.
Xbox's Official Response (Or Lack Thereof)
As of July 2026, Xbox has not issued an official public response to Chris Avellone's claims or the reports of continued development on Avowed 2. The cancellation was part of a broader strategic reset under new CEO Asha Sharma, who mandated that Obsidian cancel the sequel while greenlighting a new Fallout game.
The cancellation appears to be less about Avowed 2's quality or performance and more about Xbox's shifting priorities. According to reporting, the game wasn't cancelled because it was failing—it was cancelled because Xbox is changing what it wants from its first-party studios, focusing investment primarily on the biggest franchises.
What About Other Obsidian Projects?
Avellone's statements also provided clarity on the status of other Obsidian projects:
| Project | Status |
|---|---|
| Grounded | Still going (mostly outsourced to Eidos Montreal) |
| Outer Worlds 2 Expansions | Still planned for now (1st expansion coming September 2026) |
| New Fallout Game | Greenlit by Xbox, with Josh Sawyer (Fallout: New Vegas director) reportedly leading development |
| Shadowrun Project | Paused (John Gonzalez was working on this before being moved to Fallout) |
| Pillars of Eternity 3 | No mention; Avellone notes it may be "some time (or never)" before another Pillars game |
What This Means for Fans: Realistic Expectations
While the news that Avowed 2 is still being developed is encouraging, fans should maintain realistic expectations:
- Avowed 2 is not officially dead
- Obsidian is actively working to save the project
- The game may be further along than expected
- There's a clear strategy to get it re-approved
- Xbox has not committed to releasing the game
- The "re-pitch" strategy could still fail
- Xbox's new strategy focuses on biggest franchises only
- There's no timeline for when (or if) the re-pitch will happen
- Avellone speculates the preliminary work could eventually be repurposed into a new Elder Scrolls game
Frequently Asked Questions (FAQ)
Is Avowed 2 officially cancelled?
Yes and no. Xbox officially cancelled Avowed 2 as part of their July 2026 restructuring. However, according to Chris Avellone and Jason Schreier, a small team at Obsidian is still actively working on the game with hopes of getting it "uncancelled" through a re-pitch to Xbox leadership.
What is Obsidian's strategy to save Avowed 2?
Obsidian is continuing development on Avowed 2 with a skeleton crew while waiting for other projects like the new Fallout game to reach milestones. Their strategy is to get the sequel so close to completion that Xbox will approve its release, since the additional investment required would be minimal.
How far along is Avowed 2?
According to Jason Schreier, the game may be "farther along than people would expect for a sequel to a game that came out last year." Chris Avellone noted that "a lot of pre-production work has already gone into it," though exact development progress has not been disclosed.
Why did Xbox cancel Avowed 2 in the first place?
The cancellation was part of Xbox's "big reset" under new CEO Asha Sharma. Reports indicate the game wasn't cancelled because it was failing, but because Xbox is changing its strategy to focus investment primarily on the biggest franchises. The cancellation coincided with greenlighting a new Fallout game at Obsidian.
Will Avowed 2 ever be released?
There's no guarantee. Obsidian is actively working to save the project through their "re-pitch" strategy, but Xbox has not committed to releasing the game. Chris Avellone has speculated that if the re-pitch fails, the preliminary work could potentially be repurposed into a new Elder Scrolls game, especially with The Elder Scrolls VI still far from launch.
What is Chris Avellone's role in all this?
Chris Avellone is a former Obsidian co-founder and revered RPG designer who left the studio years ago. He currently works at Republic Games on a new dark fantasy RPG. However, he maintains contacts at Obsidian and served as an informant, sharing information from current Obsidian employees about the status of Avowed 2 and other projects.