Again, to repeat for like the millionth time, neither PoE2 nor Tyranny "flopped" for Obsidian. Both games have delivered a net profit for them. Furthermore, both games received significant critical acclaim. There's a huge difference between a game not delivering spectacular sales versus being a "flop."
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Yeah, they eventually broke even. Speaking about which, even PS:T back then in the end made a profit, (or Lucas Art's Grim Fandango too, another "oddball" game from roughly the same era widely considered as major flop), just not by much, which is why both a sequel to PS:T was never really considered until Numenera, that spiritial sequel some odd 20 years later -- and Lucas Arts just did one final more adventure game in the fairly low budgeted, and safe fourth Monkey Island game (and that was that).
However, PoE2 and Tyranny were considered a sales disappointment upon release. Which is one of the reasons why they didn't immediately go on to develop a PoE3, even though in the build-up there were already talks about that (they were pretty convinced that they'd sell more copies than the first game, just as DOS2 did over DOS1, which they also took inspiration from for doing the very expensive full voice-overs, which eventually backfired considering the lower sales compared to PoE1). Can't find the interview in particular, but there was one talking about major engine revamps being done which would also benefit a possible PoE3. Instead, this eventually happened (I'd be on board for a PoE3 for sure, personally):
https://www.eurogamer.net/articles/...fore-committing-to-pillars-of-eternity-3And of course, Obsidian's commitment to a Skyrim-like in "Avowed" set in the Pillars universe instead.
Wonder where they got those ideas from to prioritize the one over the other. 
Here's hoping it may be what "New Vegas" was to Bethesda's vision of "Fallout" -- a more intelligent, more complex and plain more fully-fledged RPG game than the BEthesda "original". However, Obsidian has also lost quite a few staff from back then. I've yet to play "The Outer Worlds", in parts because what I've seen and discussed about it paints the picture of a streamlined, simplified, less reactive and worse "New Vegas". One day I may try though -- Pathfinder WOTR is the first game for me this year. "New Vegas" as argued, is to me one of the very few examples of an AAA RPG done "right". Rather than simplifying mechanics over and over and/or focus on Hollywood-like storytelling and endless cutscenes in that desperate attempt to reach an ever larger audience, it's basically just like the oldschool Fallouts, but in 3D (action). Of course, Bethesda didn't continue from there, but actually simplified things even further from their boring F3 to also lull in the FPS crowd plain not that much interested in more fleshed out RPG mechanics (or hell forbid, dialogue).
That said, whilst I personally have my preferences, as can probably be seen -- a healthy market supports all kinds of products for everybody (which RPGs outside of very tiny indies on shoestring budgets in between roughly 2004/5 and 2014ish just plain didn't). Hence I see games such as BG3 as possible bridge builders between the "then" and "now". It's clearly developed on a much larger budget than any Kickstarter / Fig / indie peers. And it also has very modern features in multiplayer. However, it's also still a somewhat faithful D&D adaptation, including all the intricate D20 mechanics and character classes. As such, it sure won't break any Skyrim-like sales records any, as Skyrim is much much simpler to pick up and play (and much more visually exciting). However, will be interesting to see how this eventually plans out.
There's still not been much of a middle ground lately (or at least a middle-ground yet not fully lexplored) -- it's either fully-on action-adventurish / FPS / interactive movie fare such as Mass Effect / The WItcher / Fallout or system heavy smaller games such as Solasta, Pathfinder, Poe et all. Twenty years ago when Bioware was still in that transition stage between "tabletop enthusiasts" and "Blockbuster studio" for instance you had games like Kotor which also were still very firmly rooted in the more "oldschool" approach (there were few classes to pick from, but the underlying system was D&D D20 100%) -- just boasting typically AAA (cinematic) presentation which actually "hid" some of that also during combat with then pretty fluid and intricate combat animations pretty fitting for the Star Wars franchise.