Modern Microsoft is quiet different in compare to the past.
The narrative about forcing developers to make games as the Microsoft's people want should be gone, like it was before with Rare and Kinect era or BUNGIE and doing
Halo forever instead of new franchise.
Seems like Obsidian wanted to make single-player with
Avowed since the idea came up, but they were one of few bigger independent studios, so I guess it was more risky to find publisher and financing. So they tried with co-op/multiplayer idea to approach more companies. Then Microsoft, ironically, gave them what they wanted – financing, safety, creative freedom, and what Feargus Urquhart also wanted – making sure that his people has insurance (that aspect is so tricky in the USA) and payrolls.
Also, worth mentioning. In January 2023, in interview with NMW, Urquhart admitted that
Microsoft gave them opportunity to work on Avowed and The Outer Worlds 2 simultaneously. Which is a good thing, because when
Avowed will be released next year, then we shouldn't wait too long for the next Obsidian's adventure.
“I think we are in a different place because of the Microsoft acquisition,” he explains, arguing that while the team would probably have ended up working on The Outer Worlds 2 either way – the original has so far sold over four million copies – they likely wouldn’t also be developing Avowed simultaneously, or have the extra 90 staff who have joined since Microsoft took over.
And as we can see with
Grounded and Pentiment – smaller games, passion projects. That also probably couldn't be possible without Microsoft's support. Yes, maybe Obsidian would find some other publisher for
Grounded or maybe they would try to self-publish this, but definitely it wouldn't look that good as it is now. With
Pentiment that project probably wouldn't be even released or maybe Obsidian would try to finance it with some crowdfunding. They were already in some phases of development before Microsoft's acquisition, but still – the final effect would much different without them.
Maybe at some point they will have a chance to make
a new Fallout game too. Now those things should be more easier.