Obsidian Returns to the Wasteland
Obsidian Entertainment — the studio behind Fallout: New Vegas, The Outer Worlds, and Pillars of Eternity — is developing a new Fallout game in collaboration with Bethesda.[reference:0][reference:1] The project is led by Josh Sawyer, who served as game director on Fallout: New Vegas and design director at Obsidian.[reference:2][reference:3] This marks the first time Obsidian has worked on the Fallout franchise since New Vegas launched in 2010.
The shift comes as part of a broader restructuring across Xbox‘s gaming division.[reference:4] As part of the reorganization, Obsidian has laid off approximately 25% of its workforce — around 60–70 employees.[reference:5][reference:6] A sequel to Avowed (2025) that was reportedly progressing well and on track for announcement has been cancelled.[reference:7][reference:8]
⚡ Key Developments
- New Fallout game — Obsidian and Bethesda collaborating on the project[reference:12]
- Josh Sawyer — New Vegas director leading development[reference:13][reference:14]
- Avowed sequel cancelled — progress was reportedly “going well”[reference:15]
- Multiple projects cancelled — as part of Xbox strategy shift[reference:16]
- Focus on proven franchises — Fallout, Elder Scrolls, Doom, Wolfenstein[reference:17]
- Latest Fallout release — Fallout 76 (2018), multiplayer survival[reference:18]
- Fallout TV series — Amazon Prime Video adaptation adds to franchise momentum[reference:19]
Sources: Bloomberg · Windows Central · Engadget
📅 Timeline of Events
Avowed sequel cancelled[reference:23]
Reporting by Bloomberg’s Jason Schreier · Engadget on X
In summary: Obsidian Entertainment — the studio behind Fallout: New Vegas — is developing a new Fallout game in partnership with Bethesda, with New Vegas director Josh Sawyer leading the project.[reference:26][reference:27] A planned sequel to Avowed has been cancelled as part of Xbox’s broader restructuring, which also resulted in the layoff of approximately 25% of Obsidian’s workforce.[reference:28][reference:29]
The new Fallout title represents the first collaboration between Obsidian and Bethesda on the franchise since Fallout: New Vegas in 2010. Further details — including the game’s setting, platforms, and release window — have not yet been disclosed.[reference:30]
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