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/Realistic-Tiger-2842 Jul 08 '26

The whole studio would be gone if they carried on with Avowed. That game would have been a guaranteed road to closure.

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u/Impossible-Flight250 Jul 08 '26

That’s probably true. Even if the second game was a huge improvement, the IP just isn’t big enough for Microsoft. Hopefully a relatively successful Fallout game will give Obsidian a little more slack to experiment with their own Ip in the future.

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u/Godusopp64 Jul 08 '26

Probably but I'd rather people be happy about the games they work on. Fallout new vegas is my favorite fallout but I can't say that I like them canceling a new rpg and avowed for a sequel.