Obsidian showcases how the fantasy action RPG's combat and side quests play out, with more details promised in the coming months.
Senua's Saga: Hellblade 2, MachineGames' Indiana Jones game, Avowed, and Ara: History Untold are confirmed for the showcase.
The showcase will also feature Senua's Saga: Hellblade 2, Avowed and Ara: History Untold, but no updates for Activision Blizzard titles.
Cain co-directed the original The Outer Worlds, before leaving Obsidian Entertainment following the RPG's launch.
Obsidian co-founder Chris Avellone says one of the pitched projects was meant to be a smaller spinoff similar to Fallout: New Vegas.
For example, allowing Obsidian to work on Pentiment and Grounded allowed the studio to work on titles like Avowed and The Outer Worlds 2.
The newest update for Grounded is loaded with new features, including the ability to make and play custom levels, and revamps to combat and quests.
The newest Grounded update gives players all the tools they might need to create their own custom levels.
"I would love the game to be on as many platforms as possible, but time will tell," says Josh Sawyer.
CEO Feargus Urquhart pushed for multiplayer early and "kept on that for a long time" before realizing it was the "wrong decision."
Microsoft's Matt Booty says a "decision has not been made", regarding the sequel, currently in development for Xbox Series X/S and PC.
The Living Lands are composed of interconnected open zones, which are full of secrets, side quests and characters, per Obsidian.
In Obsidian's upcoming fantasy RPG, players can have two companions and decide their envoy's appearance and personality.
"Sometimes you realize the way you're building is not quite living up to the experience you want to create," says director Carrie Patel.
The narrator of the gameplay trailer is Kai, a companion who plays a "major role" in the story. Players can also dual-wield various weapons.
Travel to the Living Lands as an envoy of Aedyr and investigate a mysterious plague in Obsidian's first-person fantasy action RPG.
A new leak claims that the duo of upcoming fantasy RPGs will both receive new showings at the Xbox event.
Microsoft and Nvidia signed a 10-year deal to bring the former's games to the GeForce Now cloud streaming platform earlier this year.
Xbox boss Phil Spencer says Microsoft will "announce some things that people haven’t seen" and "give updates" on previously announced titles.
Over 100 new items to craft, Base Coziness for new recipes and buffs, and a new boss, the Wasp Queen, also await in the update.