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Baldur's Gate 3 was canceled at Obsidian "because of an accounting error" – "Very suspicious on Interplay's part," says former dev

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By Kaan Serin published 18 April 2026

What could've been

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Obsidian Entertainment were once the studio heading Baldur's Gate 3, but the only reason that timeline didn't come to pass was an accounting error.

That's according to Obsidian co-founder and former developer Chris Avellone, who recently talked about what could've been with YouTube channel TKs-Mantis.

Talking Fallout with Chris Avellone - YouTube Talking Fallout with Chris Avellone - YouTube
Watch On

Apparently, the Star Wars: Knights of the Old Republic developer had been drafted to create the next entry in the Dungeons and Dragons RPG series, around 2008, when it "got canceled because of an accounting error." Avellone says it was "very suspicious on Interplay's part," the publisher of the first two Baldur's Gate games.

Article continues below
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"I'm pretty sure a payment wasn't made to the right party," Avellone explains. As soon as the project met its end, the entire team was swiftly moved on to Van Buren, Obsidian's also ill-fated version of Fallout 3 that never saw the light of day.

"But the moment that Baldurs's Gate 3 got cancelled, I knew that Van Buren wouldn't happen because regardless of the team's intentions, regardless of how much we'd love to get it done, how many hours we put in, it wouldn't matter because executive row would likely do something, which they eventually did in December 2008," he adds, nodding his head to Van Buren's eventual cancelation.

Obsidian CEO Feargus Urquhart previously lifted the lid on the studio's Baldur's Gate project more than a decade ago. Urquhart apparently told the game's rights holders that if they really wanted Obsidian to tackle such a storied series, they'd "need to give a budget that BioWare would have to do a Mass Effect or whatever.'"

You might not need me to tell you that, yep, we eventually did get a Baldur's Gate 3 - one from Larian Studios that lit the gaming world on fire. Obsidian soon went on to tackle acclaimed projects in the Fallout and South Park series, and is now working on many of its own franchises: The Outer Worlds, the Pillars of Eternity universe, and Grounded.

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"Oh, we're going there" – Baldur's Gate 3 Halsin actor "burst out laughing" when he got the script for the RPG's most infamous scene

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Kaan freelances for various websites including Rock Paper Shotgun, Eurogamer, and this one, Gamesradar. He particularly enjoys writing about spooky indies, throwback RPGs, and anything that's vaguely silly. Also has an English Literature and Film Studies degree that he'll soon forget.

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