Obsidian Entertainment sits on a proven track record. The studio shipped Pillars of Eternity and Pillars of Eternity 2, both isometric RPGs that proved substantial audiences hungry for deep, narrative-driven fantasy experiences. Then came Greedfall, an AA action-RPG that found critical praise and commercial success. Obsidian had the talent, the franchise DNA, and the market validation to create something that could challenge Baldur's Gate 3's dominance in the CRPG space.
Xbox owns Obsidian. Microsoft acquired the studio in 2018 for $45 million, integrating it into Game Pass. That ownership should theoretically position Obsidian perfectly to greenlight an ambitious, story-heavy fantasy RPG. Baldur's Gate 3 proved that players want complex mechanics, rich narratives, and dozens of hours of content. Larian Studios' smash hit grossed billions and dominated player engagement for two years straight.
Instead, Xbox appears to have steered Obsidian elsewhere. The studio worked on Avowed, an action-RPG set in the Pillars of Eternity universe, launching in early 2025. While Avowed carries promise, it's built as a first-person experience focused on action rather than the turn-based, choice-driven gameplay that made Baldur's Gate 3 resonate. Sources suggest Xbox leadership didn't prioritize a direct CRPG competitor with the scope and ambition that Baldur's Gate 3 demonstrated could work at scale.
This represents a missed strategic opportunity. Microsoft controls Obsidian's output but hasn't leveraged the studio's strengths to capture CRPG lightning in a bottle. Game Pass needs flagship franchises that justify subscriptions. Baldur's Gate 3 exists on PlayStation and PC