The Outer Worlds 3 Not in Development, but Avowed Sequel is Being Considered

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Obsidian Entertainment, a studio owned by Microsoft, has announced it doesn’t currently plan to make a third game in the Outer Worlds series. While the studio had a very busy and successful 2025, releasing three games, that fast pace has caused them to re-evaluate their future projects. This means fans shouldn’t expect The Outer Worlds 2 sequel anytime soon.

Obsidian Entertainment launched The Outer Worlds 2, Avowed, and Grounded 2 in 2025, and continues to support them with updates. The studio is already planning its next projects, with rumors suggesting they have four games in the works. This hints at another strong year for Obsidian fans, though a recent interview with a co-founder suggests there might be some important considerations to keep in mind.

Obsidian CEO Says The Outer Worlds 3 Isn’t in Development, But Avowed 2 Could Happen

Obsidian Entertainment CEO Feargus Urquhart recently told Bloomberg about the studio’s future plans. While a third Outer Worlds game isn’t in the works, a sequel to Avowed is a possibility. Despite being praised as one of the best RPGs of 2025, The Outer Worlds 2 didn’t meet Microsoft’s sales goals. This was likely due, in part, to pre-release issues with the game’s pricing. Microsoft initially planned to sell the game for $80, a price that faced significant criticism. They later lowered the price to the standard $70 for AAA games, but the initial controversy likely hurt sales, leading Obsidian to move away from the Outer Worlds series.

Image via Obsidian Entertainment

Although a third Outer Worlds game is unlikely, Obsidian Entertainment plans to create more Avowed games. While Avowed, a fantasy RPG similar to Skyrim, didn’t perform as well as Microsoft hoped, Obsidian is pleased with its sales and is considering a sequel. Both Avowed and the cancelled Outer Worlds 2 caused the studio to re-evaluate its future plans. According to Obsidian, these projects weren’t failures, but learning experiences. After reviewing the past year, the studio believes there’s currently more potential in expanding the Avowed universe than revisiting The Outer Worlds.

Obsidian didn’t just adjust its plans because sales were lower than expected. Although Avowed and The Outer Worlds 2 didn’t perform as well as hoped, Grounded 2 was a success, and it showed the team a path forward. According to Urquhart, these mixed results led Obsidian to rethink its approach to game development – specifically, how much time and money they invest in each project. Grounded 2 was made relatively quickly and with a smaller budget than the other two games, and now the studio wants to focus on similar, shorter development cycles and release fewer games each year to achieve similar success.

Obsidian Entertainment’s design director, Josh Sawyer, admitted that releasing three games in one year, as they did in 2025, was due to problems during development. The studio now aims to shorten development cycles to three or four years and release fewer games, allowing them to focus on quality. Both The Outer Worlds 2 and Avowed took six to seven years to develop, a timeframe Obsidian wants to avoid in the future. While it’s unclear how this will impact upcoming projects, fans hoping for a third Outer Worlds game may be disappointed.

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2026-02-04 19:34