According to a new report, Xbox is shifting one of its biggest RPG studios toward the Fallout franchise, with Fallout: New Vegas director Josh Sawyer reportedly tapped to lead a new Fallout game. The move reportedly comes as Microsoft restructures Xbox, cancels multiple projects at Obsidian Entertainment, and doubles down on its biggest gaming franchises.
The timing comes as no surprise given how Xbox wants Bethesda to focus on its tentpole games like Fallout and The Elder Scrolls. The franchise hasn’t received a brand-new mainline release since Fallout 76 in 2018, while Bethesda has remained focused on Starfield and The Elder Scrolls 6. In the meantime, Amazon’s Fallout TV series introduced millions of new fans to the post-apocalyptic RPG universe, helping drive player counts for older Fallout games to new highs and making the franchise one of Xbox’s biggest long-term investments. Yet, in all of it, fans have clamored for a new game to no avail.
Obsidian Entertainment is Working on a New Fallout Game
According to a Bloomberg report via Jason Schreier, whose track record is impeccable, Obsidian Entertainment has canceled several projects as part of Xbox’s broader restructuring, including a planned sequel to 2025’s Avowed. The report also says roughly a quarter of the studio’s workforce has been laid off. Under Xbox CEO Asha Sharma’s strategy of investing more heavily in major franchises, Obsidian will instead begin work on a new Fallout game alongside Bethesda Game Studios.
- Fallout: New Vegas director Josh Sawyer will reportedly lead the project.
- Bethesda Game Studios will work with Obsidian on development.
- Avowed 2 has reportedly been canceled despite progressing well internally.
- Multiple unannounced projects were also shelved.
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For longtime Fallout fans, the biggest detail is Sawyer’s involvement. Sawyer previously directed Fallout: New Vegas, which remains one of the most beloved entries in the franchise more than 15 years after its release. While Bethesda has retained control of Fallout since acquiring the IP, this would mark Obsidian’s first return to the series since 2010, reuniting one of the franchise’s most celebrated developers with the universe that helped define its modern reputation.
The restructuring doesn’t mean Obsidian is abandoning everything else, however. Bloomberg reports that the studio will continue supporting The Outer Worlds 2 with post-launch DLC while also remaining involved with Grounded 2. Some developers who had been working on Avowed 2 are reportedly being reassigned while they wait for larger projects—including Fallout—to ramp up, leaving open the possibility that the fantasy RPG sequel could eventually return in some form. But at least for now, Fallout is the focus.
As it said, Xbox appears to be concentrating its efforts on franchises with proven audiences, and few carry as much weight as Fallout. Despite everything lost to this point, it could finally give fans something they’ve wanted for over a decade: a new Fallout game from the creative team behind Fallout: New Vegas.
- Released
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October 19, 2010
- ESRB
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M for Mature: Blood and Gore, Intense Violence, Sexual Content, Strong Language, Use of Drugs
- Engine
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Gamebryo








