Obsidian's Shifting Game Development Strategy: The Unexpected Success of Grounded 2

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In 2025, game development studio Obsidian Entertainment released three major titles: 'Avowed', 'The Outer Worlds 2', and 'Grounded 2'. While the first two were anticipated as large-scale, first-person RPGs, it was the survival crafting game 'Grounded 2', developed in collaboration with Eidos-Montréal, that surprisingly garnered significant success. According to a Bloomberg report, 'Avowed' and 'The Outer Worlds 2' did not meet Microsoft's sales expectations, highlighting a shift in market reception.

Obsidian Entertainment Reassesses Development Approach Following Mixed Game Releases

In 2025, a year marked by a prolific output from Obsidian Entertainment, the studio launched three distinct titles: the role-playing adventures 'Avowed' and 'The Outer Worlds 2', alongside the survival crafting game 'Grounded 2'. Despite high hopes for the two larger RPGs, an investigation by Bloomberg revealed that both 'Avowed' and 'The Outer Worlds 2' failed to reach Microsoft's predetermined sales targets. Conversely, 'Grounded 2', which was co-developed with Eidos-Montréal within a two-year timeframe, emerged as an unexpected triumph, surpassing commercial expectations. Obsidian CEO Feargus Urquhart candidly reflected on these mixed results, acknowledging the disappointment while emphasizing the valuable lessons learned. This experience has initiated a strategic re-evaluation within the company, prompting discussions about streamlining development processes. Urquhart expressed a desire for Obsidian to adopt a more agile approach, aiming for game development cycles of three to four years. He questioned the necessity of overhauling every aspect of a game with each new iteration, citing internal debates about resource allocation, such as the extensive person-months dedicated to minor features like inventory screens. 'Avowed' notably underwent a challenging seven-year development period, initially conceived as an ambitious hybrid of 'Destiny' and 'The Elder Scrolls' before its scope was ultimately narrowed. Josh Sawyer, a director at Obsidian, admitted that the original vision for 'Avowed' was perhaps unachievable for any development team. Despite these challenges, the 'Pillars of Eternity' universe, to which 'Avowed' belongs, is poised for a continued presence. Obsidian plans to release additional games within this universe, develop entirely new titles, and create expansions for both 'The Outer Worlds 2' and 'Grounded 2'. However, a third installment in 'The Outer Worlds' series is not currently in the pipeline. While the sales performance of 'Avowed' and 'The Outer Worlds 2' may not have met initial projections, all three games received strong critical acclaim. Reviewers praised 'The Outer Worlds 2' for surpassing its predecessor, lauded 'Grounded 2' as one of the finest survival games available, and commended 'Avowed' for its captivating narrative and stunning visuals set in an immersive fantasy realm.

The contrasting commercial performance of Obsidian Entertainment's recent releases offers valuable insights for the video game industry. It underscores that critical acclaim does not always translate directly into sales figures, especially when facing ambitious internal targets. The success of 'Grounded 2' suggests that focused, efficient development within a reasonable timeframe can yield significant returns, even for projects initially perceived as niche. This experience could encourage developers to reconsider the scope and duration of large-scale productions, potentially favoring shorter, more manageable development cycles without sacrificing quality. Furthermore, it highlights the importance of adaptability and learning from both triumphs and setbacks in the ever-evolving landscape of game development.

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