7 January 2026

Avowed, Grounded Developer Obsidian Reportedly Working on 4 New Games

By newsgame


Obsidian Entertainment, one of Xbox‘s most recognizable development subsidiaries, reportedly has four upcoming games in the works, which should be a boon to its parent company. Xbox has faced a lot of criticism over the past several months, but the arrival of four new games from Obsidian could do a lot to repair its rapport with the gaming public.

Founded in 2003 by three former employees of Black Isle Games just before the latter studio’s closure, Obsidian has been the driving force behind many top-rated RPGs over the years, establishing itself early with Star Wars Knights of the Old Republic 2: The Sith Lords in 2004 and Neverwinter Nights 2 in 2006. Since Obsidian was acquired by Microsoft in November 2018, the studio has continued to consistently release hits, like The Outer Worlds, Grounded, and Pentiment, and 2025 was its biggest year ever with the releases of Avowed, The Outer Worlds 2, and Grounded 2.

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Obsidian Reportedly Has 4 Games Lined Up for Xbox

With three big games having launched within the last 12 months, Obsidian doesn’t seem to be resting on its laurels, as a new report from an industry insider suggests that a lot is happening at the development studio. Jez Corden of Windows Central recently reported that four more games are currently in the works at Obsidian. While he didn’t provide too many specifics on the contents of these games, he said he has heard that they will be a mix of smaller and larger titles. There’s a possibility that some or all of these games could be revealed at the Xbox Developer Direct showcase on January 22, but in the meantime, fans can still speculate about what kinds of games may be coming down the Obsidian pipeline.

The Outer Worlds Companions Moon Man Mask Helmet
The Outer Worlds Companions Moon Man Mask Helmet, featured image
Image via Xbox Game Studios

One franchise that could see a game released under Obsidian’s development is Fallout. Bethesda, which is also owned by Microsoft, has been in charge of the franchise for close to two decades, and although fans are wondering when Fallout 5 will be coming, Bethesda is certain to be at the helm. However, many members of the crew at Obsidian have been working on Fallout games since the early days. These include Obsidian CEO Feargus Urquhart and chief information officer Darren Monahan, and the recent return to Obsidian by Fallout series creator Tim Cain in December could very well be an early sign that these developers will get another shot at making at least one more game set in post-apocalyptic America.

what if new vegas no courier lucky 38 Image via Bethesda Softworks

Bethesda Game Studios executive producer Todd Howard may have provided another clue that hints at Obsidian’s return to the franchise. During an interview that was shared in early December, Howard was asked about the potential of Fallout 3 and Fallout: New Vegas remasters being created. His response included a statement that Bethesda is “working on a whole bunch of stuff and, you know, we look forward to the day that we can reveal them.” That’s not an outright commitment to both remasters, but while Bethesda produced Fallout: New Vegas, Obsidian handled its development, and the fact that those comments were shared just days after Cain’s announcement of a return to full-time work at Obsidian may be turning some heads.

A scene featuring characters in South Park The Stick Of Truth Image via Ubisoft

Aside from Fallout, there are a lot of possibilities based on Obsidian’s past releases, not to mention any brand-new IPs that may be revealed. A new KOTOR game can probably be ruled out, since Star Wars: Fate of the Old Republic‘s release will be handled by Arcanaut Studios, and another South Park RPG is likely also off the table, since The Stick of Truth‘s storyline has been carried over to two different games by two different developers, neither of which are Obsidian. Still, both The Outer Worlds and Grounded gained enough popularity to earn sequels in 2025, and there hasn’t been a new Pillars of Eternity game since 2018, which could make them all candidates for another sequel, along with Pentiment.

Obsidian Entertainment

Date Founded

June 12, 2003

Headquarters

Irvine, California, United States