adminA new Fallout game is reportedly part of Obsidian Entertainment’s plans following cancellations and team changes tied to a wider Xbox restructuring. The reported project would bring the studio back to the series after its work on Fallout: New Vegas, while other teams continue supporting existing games.
Image credit: Obsidian/Bethesda
What is known about the new Fallout game?
The reported strategy centers on a new Fallout title led by Obsidian design director Josh Sawyer. Bethesda is expected to collaborate on the project, although details such as its setting, release window, platforms and gameplay have not been announced. An Xbox spokesperson declined to comment on the reported plans.
Obsidian previously developed Fallout: New Vegas, which was also directed by Sawyer. That game became the setting for the second season of Prime Video’s Fallout adaptation. For now, the new project remains unannounced, so its connection to New Vegas beyond the studio and director is not confirmed.
Reader tip: Until official details are shared, treat reports about the game’s scope and development plans as unconfirmed rather than as a release announcement.
How Obsidian’s teams are reportedly changing
The restructuring is said to have affected between 60 and 70 Obsidian employees and led to the cancellation of several projects that had not been announced publicly. A small team is reportedly continuing work on a planned sequel to Avowed, with the aim of keeping the project viable.
Other teams are expected to focus on downloadable content for The Outer Worlds 2 and additional content for Grounded 2. These assignments would allow the studio to maintain support for existing games while prioritizing the reported Fallout project.
Fallout has also received renewed attention following the television adaptation. The series became Prime Video’s sixth-most-watched show of all time, and sales of Fallout games rose significantly after its premiere last December.
Wider impact of the Xbox restructuring
Obsidian is one of several studios affected by changes announced across Xbox. Id Software confirmed 136 layoffs, and 22 employees at Bethesda Game Studios in Austin were also affected. Reports indicate that as many as half of ZeniMax Online Studios’ development team could be impacted. Staff reductions were also reported at Activision, Blizzard, King, Mojang and Xbox Game Studios.
Five internal studios were divested as part of the broader changes. Compulsion Games and Double Fine are set to become independent studios. Ninja Theory and Undead Labs will move to new ownership arrangements, while Arkane has begun consultation proceedings.
Xbox CEO Asha Sharma said the company had expanded its studio portfolio substantially since 2018, while competition has grown among publishers and independent developers. Sharma also said Xbox does not need to own every successful independent studio and plans to support creators with development tools and access to audiences.
What the new Fallout game report means
The reported new Fallout game would reunite Obsidian with a franchise it has worked on before, but key details remain unconfirmed. The studio’s other teams are reportedly balancing ongoing game support with the continuation of Avowed’s planned sequel. Until Xbox, Obsidian or Bethesda makes an official announcement, players should view the project details and staffing plans as reported information, not confirmed release plans.
