New Fallout Game Is New Focus For New Vegas Developer Obsidian Entertainment – Report
Obsidian Entertainment has reportedly shifted its development focus to create a new entry in the Fallout franchise, marking a significant strategic pivot by Microsoft’s Xbox division following its broader “reset.” The studio, behind games like Grounded, The Outer Worlds, and Avowed, is canceling its planned sequel to Avowed along with multiple other unannounced projects to pursue this new direction.
The pivot comes in the wake of substantial Xbox layoffs affecting 3,200 staff members company-wide, with Obsidian losing approximately 25% of its workforce—52 employees. According to reports, Avowed 2 had been progressing well and was on track for announcement within the next year, though it no longer aligns with new Xbox leadership’s strategic priorities. A skeleton crew will continue supporting Avowed until the new Fallout project reaches a point where full resources can be allocated.
The new Fallout game will be directed by Josh Sawyer, the acclaimed director of 2010’s Fallout: New Vegas, widely regarded by many fans as a peak for the franchise. This marks Obsidian’s return to Fallout after more than 15 years. The announcement arrives as the Fallout TV show enjoys recent critical and commercial success, and with Bethesda’s The Elder Scrolls 6 still years away from completion, positioning this new Fallout entry as a significant development for the franchise.
Sources
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