Microsoft tells Obsidian to pause or cancel Avowed 2 and make a new Fallout game

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What we know so far: Fallout fans have long wondered whether Obsidian would make a follow-up to its well-regarded Fallout: New Vegas after coming under Microsoft's umbrella. Following massive layoffs and new directives from Xbox's newly appointed CEO, reports indicate that Obsidian will soon begin work on the franchise's first major entry in nearly a decade.

Sources have informed Bloomberg that Microsoft is directing Obsidian Entertainment to cancel or pause its planned sequel to Avowed and develop a new Fallout game. The project would be led by Josh Sawyer, who directed 2010's Fallout: New Vegas.

If the report is accurate, it fits Xbox CEO Asha Sharma's plan to refocus Microsoft's studios on its most commercially successful franchises, including Fallout, The Elder Scrolls, Doom, Quake, and Wolfenstein. Bethesda Game Studios has managed Fallout since...

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