The Outer Worlds 2 Cancelled: Obsidian Shifts Focus After Disappointing Sales

by Chief Editor

Obsidian’s Shift: What the ‘Outer Worlds 2’ Cancellation Means for the Future of RPG Development

The news hit RPG fans hard: Obsidian Entertainment has shelved plans for The Outer Worlds 2. While disappointing, this decision, coupled with the underperformance of Avowed and the success of Grounded 2, signals a significant turning point not just for Obsidian, but for the wider game development landscape. It’s a story of overambition, shifting priorities, and the increasing pressure on studios to deliver consistent profitability.

The Perils of the Triple-A Rush

Obsidian’s attempt to launch three major titles – Avowed, Grounded 2, and The Outer Worlds 2 – within eight months proved disastrous. Studio design director Josh Sawyer candidly admitted this was “the result of things going wrong.” This highlights a growing trend: the dangers of rushing development cycles to meet arbitrary deadlines. The industry is increasingly recognizing that quality suffers when studios are stretched too thin. A recent report by GamesIndustry.biz found that over 40% of developers still experience crunch time, directly impacting both game quality and employee wellbeing.

Grounded 2’s success, achieved with a comparatively short two-year development period, stands in stark contrast. This suggests a focus on smaller, more manageable projects can yield better results – both creatively and financially. It’s a lesson many studios are now taking to heart.

Microsoft’s Profitability Push and its Impact on Creative Risk

The shadow of Microsoft’s 30% profit margin target looms large over Obsidian’s future. While the company hopes to continue pursuing riskier projects, the pressure to deliver consistent returns is undeniable. This raises a critical question: can creative freedom and financial viability coexist in the modern gaming industry?

We’ve seen similar pressures impact other studios. The cancellation of several promising projects at Microsoft-owned studios in March 2024 underscores this trend. The focus is shifting towards projects with a clearer path to profitability, potentially stifling innovation and originality.

The Rise of Focused Development and Established IPs

Obsidian’s renewed focus on the Pillars of Eternity universe (Eora) demonstrates a strategic shift towards leveraging established IPs. This isn’t unique to Obsidian. Many developers are opting to revisit beloved franchises or expand existing worlds rather than taking risks on entirely new concepts. This approach minimizes risk and capitalizes on pre-existing fanbases. The success of remakes like Resident Evil 4 and Final Fantasy VII Remake proves the viability of this strategy.

However, Obsidian’s VP of operations, Marcus Morgan, acknowledges the constant requests for a “New Vegas 2,” highlighting the studio’s desire to balance fan expectations with its passion for original IP. Finding that balance will be crucial for their long-term success.

Shorter Development Cycles: A New Industry Standard?

The extended development times for Avowed and The Outer Worlds 2 (over six years each) are increasingly seen as unsustainable. Obsidian’s aim to create games on shorter timelines is a reflection of a broader industry trend. This necessitates streamlined workflows, efficient project management, and a willingness to scope projects realistically.

The adoption of tools like Unreal Engine 5 and Unity’s evolving features are also contributing to faster development cycles. These engines offer pre-built assets and functionalities, reducing the need for extensive custom development.

The Future of RPGs: What to Expect

The Obsidian situation offers several key takeaways for the future of RPGs:

  • Focus on Quality over Quantity: Studios will prioritize fewer, more polished releases.
  • IP Leverage: Expect more sequels, remakes, and expansions of established franchises.
  • Shorter Development Cycles: Games will be developed and released more quickly.
  • Profitability Pressure: Creative risk-taking may be tempered by financial considerations.

FAQ

Q: Will The Outer Worlds 2 ever be made?
A: Currently, there are no plans to continue development on The Outer Worlds 2.

Q: What is Obsidian working on now?
A: Obsidian is continuing development on Grounded 2 and plans to return to the world of Eora (Pillars of Eternity).

Q: Is Microsoft forcing studios to prioritize profits over creativity?
A: Microsoft has publicly stated profitability goals, which are undoubtedly influencing studio decisions, but the extent of this influence is still being debated.

Q: Will we ever get a “New Vegas 2”?
A: Obsidian acknowledges the demand for a sequel to Fallout: New Vegas, but their focus remains on original IP and expanding existing worlds.

Did you know? The original Fallout: New Vegas was developed in just 14 months, a testament to the power of focused development and a talented team.

Pro Tip: Keep an eye on studios that are successfully balancing creative ambition with efficient development practices. These are the ones most likely to deliver the next generation of groundbreaking RPGs.

What are your thoughts on Obsidian’s decision? Share your opinions in the comments below and let us know what RPGs you’re most excited about!

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