Former Obsidian Entertainment co-founder Chris Avellone has suggested that Avowed 2 is already well into development, despite recent layoffs affecting Xbox and its studios.
The comments came during a discussion on social media following Microsoft’s latest round of job cuts, which included layoffs across Xbox Game Studios.
Responding to a post that suggested layoffs were expected after the releases of Avowed and The Outer Worlds 2, Avellone disagreed with that assessment.
“Actually, that was one pipeline reason not to do it,” he wrote.
When another user criticised Avowed and The Outer Worlds, Avellone clarified what he meant by “pipeline” and hinted that work on a sequel to Avowed is already significantly advanced.
“To clarify, I said ‘pipeline,’ and that’s all I said.”
He then added, “Also, I’m betting Avowed 2 wasn’t canceled, it’s too far along.”
Avellone did not claim to have direct knowledge of the project’s status, instead framing the comment as his own expectation. Obsidian Entertainment has not announced Avowed 2, nor has the studio confirmed that a sequel is currently in development.
The remarks come as Microsoft continues its major restructuring of Xbox, which has resulted in widespread layoffs across multiple first-party studios.

