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Obsidian's The Outer Worlds 2 Underperformed, and There Won't Be a Third

  • Last year, Obsidian Entertainment confirmed it has no plans to develop The Outer Worlds 3 after Avowed and The Outer Worlds 2 underperformed despite critical praise.
  • Responding to those delays, Bloomberg found The Outer Worlds 2’s development was worsened by the pandemic and technical challenges, with Adler noting, `I don't think anybody really likes five-, six-, seven-year dev cycles.'
  • Grounded 2's quicker cycle showed success as Xbox highlighted Obsidian launching three games in eight months, while design director Josh Sawyer said `Spacing those releases helps the company manage its resources and not burn everybody out'.
  • Obsidian confirmed it will develop new content for The Outer Worlds 2 and future games in Avowed's Eora setting while prioritizing spaced releases and shorter timelines.
  • Industry observers point out that Grounded 2's success shows shorter development cycles can still achieve sales targets, even as Urquhart hopes Microsoft continues to fund riskier projects despite its 30% profit-margin goal.
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IGN broke the news in United States on Tuesday, February 3, 2026.
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