In a revealing interview with Bloomberg, Obsidian Entertainment CEO Feargus Urquhart reflected on a challenging yet insightful year for the studio. Despite launching three major titles in 2025, the sales figures for two of the games, Avowed and The Outer Worlds 2, fell short of expectations. Urquhart, however, emphasized the learning opportunities these outcomes presented.
“They’re not disasters,” Urquhart remarked candidly. “I’m not going to say this was a kick in the teeth. It was more like: ‘That sucks. What are we learning?’” His comments underscore the studio’s commitment to growth and adaptation in the rapidly evolving gaming industry.
Grounded 2: A Bright Spot
While Avowed and The Outer Worlds 2 struggled to meet sales targets, Grounded 2 emerged as a standout success. The game, developed in under three years following a 2023 pitch from Eidos Interactive, achieved impressive sales relative to its production cost. This success highlights the potential benefits of shorter development cycles, a strategy Urquhart is keen to replicate for future projects.
Grounded 2’s triumph is particularly notable given the lengthy development periods of its counterparts, which each took approximately six years to complete. Urquhart’s ambition to reduce production timelines to around three years could signify a strategic shift for Obsidian, aiming to balance quality with efficiency.
Xbox’s Strategic Moves
Meanwhile, broader industry dynamics have also influenced Obsidian’s strategies. According to the report, Xbox has implemented a 30 percent profit-margin goal for many of its internal studios. This financial target has prompted a significant move: the release of first-party Xbox games on the competing PS5 console, a decision that reflects the competitive pressures within the gaming market.
The push for profitability and cross-platform availability signals an evolving landscape where traditional console exclusivity is being reconsidered. This shift could have far-reaching implications for game developers and players alike, as studios navigate the balance between platform loyalty and financial viability.
Looking Ahead: Lessons and Future Plans
As Obsidian Entertainment looks to the future, the lessons from 2025 are clear. The studio plans to continue developing a diverse range of games, both large and small in scope, while focusing on reducing development cycles and production costs. Although no new titles have been officially announced, reports suggest that additional content for The Outer Worlds 2 and Grounded 2 is in the works.
Urquhart’s reflections and strategic adjustments highlight the importance of adaptability in the gaming industry. As technological advancements and consumer preferences continue to evolve, studios like Obsidian must remain agile, leveraging past experiences to inform future success.
With a clear vision for the future and a commitment to innovation, Obsidian Entertainment is poised to navigate the challenges and opportunities that lie ahead. The studio’s journey serves as a testament to the resilience and creativity that define the gaming industry today.
