Microsoft has reportedly instructed Obsidian to pause or cancel work on Avowed 2 in order to develop a new Fallout game. However, the status of Avowed 2 is unclear, with some sources suggesting it may not be possible to cancel the project at this stage, while others indicate that Obsidian is fighting to re-pitch it. Obsidian's future as a studio is also uncertain, with reports of layoffs and negotiations to avoid closure.