Obsidian Entertainment has officially announced it has no current plans to develop The Outer Worlds 3, a decision seemingly driven by the underperformance of its predecessor, The Outer Worlds 2. Company head Fergus Urquhart stated that the sales figures for the sequel were "disappointing," prompting a strategic reevaluation of development costs and timelines.
A Strategic Pivot
Urquhart emphasized the need for Obsidian to "think a lot about how much we put into the games, how much we spend on them and how long they take." This indicates a shift towards more cautious resource allocation. While The Outer Worlds 3 is off the table for now, Obsidian remains committed to the IP, planning to release downloadable content for The Outer Worlds 2. This suggests a continued effort to extract value from the existing game rather than launching a full-scale sequel.
Similarly, Obsidian's recent RPG, Avowed, is described as a "miss" by Urquhart, though the company intends to continue exploring its universe. This echoes their approach with the Pillars of Eternity franchise, indicating a strategy of expanding existing worlds through various projects rather than solely relying on direct sequels. In contrast, Grounded 2, another project, is noted as a "hit," with DLC also in development, highlighting a more successful venture for the studio.
Lessons from Release Cadence
Furthermore, Urquhart revealed that Obsidian released three games last year, a move he deemed detrimental. "Spacing those releases helps the company manage its resources and not burn everybody out," he explained. "It’s not good to release three games in the same year. It’s the result of things going wrong." This retrospective insight points to a future strategy focused on a more sustainable and manageable release schedule, likely prioritizing quality and team well-being over sheer volume.
Details about entirely new games in development remain scarce, with Obsidian keeping these projects under wraps. However, the studio is preparing to launch Avowed on PS5 on February 17, alongside an anniversary update for all versions. This update will introduce New Game Plus, new races, and new weapon types, aiming to enhance the player experience for this existing title. The move suggests a focus on leveraging and supporting current titles while re-evaluating larger franchise futures.
Obsidian's decision regarding The Outer Worlds 3 is a stark reminder of the financial realities in game development. Even well-received IPs can falter if sales don't meet expectations, forcing studios to make difficult strategic choices. The studio's commitment to DLC for The Outer Worlds 2 and continued world-building for Avowed indicate a pragmatic approach to franchise management, seeking to satisfy fans while optimizing development resources. This pivot signals a more measured and financially astute direction for Obsidian Entertainment as it navigates the competitive landscape of the gaming industry.