They've got an "original IP XBLA game" in the works too. That's alongside Dungeon Siege III, Fallout: New Vegas DLC and a "new world" they started pitching.
"...as a studio we have some original ideas and stories to tell," Obsidian's Feargus Urquhart told Game Revolution .
"We have a great idea for a new world we've just started pitching to publishers and we have an older pitch that we really like called "Defiance" which is about a fantasy world where, basically, Sauron won." Currently their next big RPG is Dungeon Siege III.
"Everything isn't happy in The Shire, they didn't get the ring in the fire and the hobbits are all dead. We think that's a cool pitch and we hope to have a publisher pick that up at some point," continued the studio big wig.
"We're also working on an original IP XBLA game. so that hopefully will be out first quarter next year." The last original creation from Obsidian Entertainment was Alpha Protocol and it didn't perform well, with publisher SEGA killing chances of a sequel.
"It'll be an action RPG that's focused on fun, not Dungeon Siege, it's quite a bit different in a different genre with a different camera," he continued.
"We also might throw our hat in the whole free-to-play thing. In the game industry there's a lot of different opportunities for all different kinds of products." Dungeon Siege III releases on Xbox 360, PS3 and PC in EU May 27th, in US the 31st.