Avowed game director Carrie Patel says that Obsidian wants to delve further into the Pillars of Eternity universe, potentially indicating at new content for Avowed or maybe even a follow-up.

Xbox's latest first-party Avowed game looks to be a hit among RPG fans, and Obsidian apparently still has a lot of stories to tell in their unique high fantasy universe. The game's branching paths and choice-driven narrative offers a very Dragon Age-level opportunity for Obsidian to preserve some sort of continuity in between expansions or games.j
In a recent interview with Bloomberg, Avowed game director Carrie Patel expressed interest in staying in the world for a bit:
"Now that we've built this wonderful world, and also built this team strength and muscle memory around the content and gameplay in this world, I'd love to see us do more with it."
Avowed had been in development as early as 2018 but was originally envisioned with live service Destiny-like multiplayer elements set in a very Skyrim-esque fantasy world. The idea was cut entirely in 2020 when Microsoft bought Obsidian, sources tell Bloomberg reporter Jason Schreier.
It's unclear how well Avowed is doing insofar as sales, but the RPG did manage to break the top 10 best-selling games on Steam shortly after launch. It's important to remember that Avowed was also created to help boost Xbox Game Pass subscriptions so that factors into the performance evaluation of the game--the specifics of these evals remain unknown.
Right now Obsidian is working on The Outer Worlds 2, which is also due out in 2025.