Obsidian is understandably hesitant to release another Pillars of Eternity game. PoE2 was a significant commercial disappointment and Obsidian were not quite sure why (though maybe that has changed).

As somebody who was underwhelmed by the first PoE and has forever given up after a third attempt at playing PoE2, I’m not sad to see that they’ve moved away, but I don’t find their particular style of Bethesda lite games appealing either. They need to come up with a style of their own. They’ve never had that and it hurts them. Some people here like to bemoan BG3 being DOS3, but Larian having a house style that is specifically associated with them is a good thing for Larian. Obsidian could learn a thing or two here.