adminThere are currently no plans for The Outer Worlds 3, according to Obsidian Entertainment head Feargus Urquhart. The studio is reassessing development timelines and spending after The Outer Worlds 2 fell short of its sales forecasts, while it still expects to return to the world of Avowed.
Image credit: Obsidian Entertainment
The Outer Worlds 3 has no current development plans
Obsidian released three games in 2025. Although Grounded 2 was a hit, The Outer Worlds 2 and Avowed both missed their targets. Urquhart said the results prompted the studio to consider how much time and money it commits to each project.
He described the outcome as disappointing, but not disastrous. Rather than treating the missed forecasts as a reason to abandon its approach altogether, the studio is looking at what it can learn from the games’ development and performance.
For players, the key distinction is that no third Outer Worlds game is currently planned; that does not amount to an announcement that the series is permanently cancelled. Obsidian has not shared a development schedule or other details for a possible future entry.
Obsidian wants shorter development cycles
Avowed and The Outer Worlds 2 each took more than six years to develop. Urquhart now wants the studio to aim for cycles of three or four years per game. That goal reflects a broader effort to manage production time and budgets more carefully.
Obsidian design director Josh Sawyer also stressed the value of spacing out releases. Launching three games in a single year can put pressure on the company’s resources and its teams. In his view, that kind of crowded schedule can be a sign that earlier plans have gone off course, rather than a healthy long-term strategy.
Brandon Adler, director of The Outer Worlds 2, noted that development periods of five, six, or seven years are not ideal. He said the studio has gradually found itself working on projects for that long, underlining why shorter cycles are now a priority.
Avowed remains part of the studio’s plans
While Obsidian has no current plans for The Outer Worlds 3, it does intend to return to the Avowed universe. The studio has not specified what that return will look like or when it might happen, so players should not assume that a particular sequel or release date has been confirmed.
Xbox Game Studios general manager Mary McGuane said Obsidian’s games are important to Xbox’s goal of reaching more players. She also highlighted the studio’s creative range as a strength for the company’s portfolio.
What the update means for players
The immediate takeaway is that Obsidian is reviewing the time and resources behind its games, with a stated goal of shorter development cycles and more carefully spaced launches. The Outer Worlds 3 is not currently in development, while a return to Avowed is part of the studio’s stated intentions. No release dates or further project details have been announced.
