Obsidian Pledges Growth After 2025 Titles Miss Sales Targets
Obsidian Entertainment, a prominent Xbox studio, had a busy 2025 with three game releases. Among these, Grounded 2 was a smaller title, while Avowed and The Outer Worlds 2 were the major AAA launches. Unfortunately, both of these latter games did not meet the projected sales targets set by their parent company, Microsoft.
Sales Performance and Studio Response
According to a report from Bloomberg by Jason Schreier, the sales figures for Avowed and The Outer Worlds 2 fell short of expectations. Obsidian’s studio head, Feargus Urquhart, characterized the outcome as a learning opportunity. He remarked, “They’re not disasters… It was more like: ‘That sucks. What are we learning?'”
Future Development Strategy
In light of these results, Obsidian is adjusting its approach to game development. Urquhart indicated that the studio aims to shorten development times for future AAA titles. The lengthy production cycles of six to seven years for both Avowed and The Outer Worlds 2 are not sustainable. Instead, the team is exploring shorter development cycles, ideally around three to four years, and utilizing smaller budgets.
- Future focus on shorter development cycles (3-4 years).
- Exploration of smaller budgets for upcoming titles.
- Grounded 2 serves as a model for effective development.
Upcoming Projects and Market Strategy
Despite the setbacks with Avowed and The Outer Worlds 2, Urquhart remains optimistic. Plans for future installments of Avowed are in the works, and a PS5 release is looming, which could bolster sales. However, it appears that The Outer Worlds 3 will not be developed at this time.
Urquhart also emphasized the importance of taking risks in game development. He expressed a desire for Xbox to continue supporting innovative projects, even if profitability is not always guaranteed to meet high expectations.
Conclusion
Obsidian Entertainment is at a pivotal moment. As the studio reflects on its recent performance, it remains committed to creating games that resonate with players. The objective is to maintain a solid business by focusing on quality and player engagement, rather than solely on profit margins. Despite the challenges, fans can look forward to more adventurous titles from Obsidian in the future under the Xbox Game Studios umbrella.
