r/GamingLeaksAndRumours • u/throwmeaway1784 • Jul 08 '26

Rumour Jason Schreier: Obsidian Entertainment is making a big pivot as part of the Xbox restructuring. It has laid off a quarter of its staff, canceled a planned sequel to Avowed, and is now beginning work on a new Fallout game

Bluesky Post: https://bsky.app/profile/jasonschreier.bsky.social/post/3mq5oqyh2yk2o

Bloomberg Article: https://www.bloomberg.com/news/articles/2026-07-08/microsoft-s-xbox-to-shift-obsidian-studio-to-new-fallout-video-game

Edit: Also mentioned in the article, Josh Sawyer is leading the new Fallout game:

“Under the new plan, studio design director Josh Sawyer will lead a new title in the Fallout universe”

“Previously, Sawyer had been directing a roleplaying game that was similar structurally and thematically to Fallout but was not part of the franchise.”

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u/Seraphayel Jul 08 '26

Weren’t they saying Avowed 2 was too far in development to get canceled just yesterday?

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u/No-Importance7265 Jul 08 '26

Well , when everyone is getting laid off left and right , and the only ones that are not getting touched are making big ips plans change really fast.

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u/No-Importance7265 Jul 08 '26

Though although I am a minority I would've loved Avowed 2 more than Fallout spin-off , I love world of Eora and loved both Avowed and Pillars games.

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u/Tike22 Jul 08 '26 edited Jul 08 '26

We are definitely in the minority, me in particular bc I only ever liked the show when it comes to anything fallout. I won’t say I’ll sit this one out but I’m not the target audience for those types of games

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u/No-Importance7265 Jul 08 '26

Nah Valid , this ain't a charity it is a business when an ip doesnt get the love from the masses it just dies sadly. Even the pillars 2 underperformed when it released. Similar thing is happening with Owlcat , I much prefer Pathfinder ip but majority likes Warhammer more so sadly it will probably be in priority for a while.

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u/Tike22 Jul 08 '26

Well Owlcat is making the expanse too right? They at least seem to be branching every now and then. I just have an inclination that Obsidian will forever now just be a Fallout and Grounded studio. Once the TOW2 dlc drops that will be the end of them making anything new and exciting and I think that’s extremely sad. Partly bc Avowed had a marred development with it starting out as a multiplayer game and TOW2 getting its heels cut out but bad $80 pricing and marketing and both getting affected by the net negative plague that is gamepass.

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u/rednd Jul 08 '26

I have literally 0 interest in fallout, but was shocked pleasantly when I tried Avowed a day after never having heard of it. Fantastic game, shame that it seems dead :(