Obsidian Entertainment, the studio behind titles like Grounded and The Outer Worlds, is navigating a period of recalibration following disappointing sales for its recent releases, Avowed and The Outer Worlds 2. While the studio found success with Grounded 2, the performance of its larger RPG projects has prompted a shift in strategy, with a focus on expanding the universe of Avowed rather than pursuing a direct sequel to The Outer Worlds.
Sales Performance and Strategic Shift
According to reports from , both Avowed and The Outer Worlds 2 failed to meet sales expectations. Obsidian’s studio head acknowledged the underperformance, signaling a need to reassess future development plans. This news comes as the gaming industry closely watches the strategies of Xbox-owned studios following Microsoft’s acquisition of Activision Blizzard.
Despite the setbacks, Obsidian isn’t abandoning the RPG genre entirely. The studio intends to build upon the foundation laid by Avowed, with plans for further games set within that universe. This decision suggests a belief in the potential of the Avowed IP, even if the initial launch didn’t reach projected sales figures. The focus on a single universe allows Obsidian to leverage established lore, characters, and gameplay mechanics, potentially reducing development costs and increasing player engagement over time.
The Outer Worlds Franchise at a Crossroads
Notably, a third installment in The Outer Worlds series, The Outer Worlds 3, is no longer in development. This marks a significant departure for Obsidian, as The Outer Worlds was a critically acclaimed title that established the studio as a major player in the RPG space. The decision to halt development on a sequel suggests that the financial risks associated with continuing the franchise outweighed the potential rewards, given the sales performance of The Outer Worlds 2.
The shift away from The Outer Worlds also highlights the challenges faced by game developers in predicting market demand. While a sequel might seem like a safe bet for a popular game, factors such as changing player preferences, increased competition, and economic conditions can all impact sales. Obsidian’s decision to prioritize the Avowed universe reflects a calculated attempt to mitigate these risks and focus on a property with perceived long-term growth potential.
Grounded 2: A Bright Spot for Obsidian
Amidst the challenges with Avowed and The Outer Worlds 2, Grounded 2 has emerged as a success story for Obsidian. The game’s positive reception and strong sales demonstrate the studio’s ability to innovate and deliver compelling experiences across different genres. Grounded 2’s success may influence Obsidian’s future development choices, potentially leading to more experimentation with unique concepts and gameplay mechanics.
The contrasting performance of Grounded 2 compared to Avowed and The Outer Worlds 2 raises questions about Obsidian’s target audience and the types of games that resonate most strongly with its player base. While Avowed and The Outer Worlds 2 are traditional RPGs with a focus on narrative and character development, Grounded 2 offers a more unique and accessible experience centered around survival and exploration.
Implications for the RPG Landscape
Obsidian’s strategic shift has broader implications for the RPG landscape. The studio’s decision to focus on a single universe, rather than pursuing multiple franchises, could signal a trend towards consolidation within the industry. As development costs continue to rise, game studios may increasingly prioritize established IPs over new ventures.
The underperformance of Avowed and The Outer Worlds 2 also raises questions about the future of single-player RPGs in a market increasingly dominated by live-service games and open-world experiences. While RPGs remain a popular genre, developers face the challenge of attracting and retaining players in a crowded and competitive environment. Obsidian’s response to these challenges will be closely watched by other studios in the industry.
The news also comes amidst reports of development pauses for other anticipated titles. Take-Two Interactive has reportedly “paused” development on Borderlands 4 for the Nintendo Switch 2, indicating a cautious approach to new hardware and potential market uncertainties. This further underscores a trend of risk aversion within the gaming industry.
