The head of Obsidian has stated that there are currently no plans for a third installment of The Outer Worlds, after failing to meet objectives for the sequel slated for 2025

After the second installment of The Outer Worlds did not meet sales projections, Obsidian Entertainment has decided not to proceed with a third game in the series. Released along with two other titles in 2025, Avowed also fell short of expectations. Despite this, the company plans to revisit the Avowed franchise in the future.

Speaking to Bloomberg, CEO Feargus Urquhart reflected on the studio's mixed outcomes. While the third project, Grounded 2, was successful, the challenges faced by both The Outer Worlds 2 and Avowed prompted an evaluation of budget, development time, and resources.

"These aren't failures," stated Urquhart. "It feels disappointing, but learning from them is crucial."

Given the lengthy development periods of over six years for both games, Urquhart is now focused on reducing the timeframe for future projects to three or four years. This strategic shift, supported by studio design director Josh Sawyer, aims to enhance the allocation of resources and avoid overwhelming the team with simultaneous projects.

"Nobody really enjoys extended development cycles," remarked Brandon Adler, who directed The Outer Worlds 2. "We've naturally adopted this approach over time."

Mary McGuane, Xbox Game Studios' general manager, mentioned to Bloomberg that Obsidian's output aligns with the broader goal of engaging a larger audience, complemented by the creative strength they bring to Xbox's offerings.