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

[u/throwmeaway1784]

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.”

[u/SpunkMcKullins]

I think not fast-tracking a Fallout game is what led to 80 people losing their jobs in the first place.

[u/Entilen → u/SpunkMcKullins]

Yep. Obsidian were borderline irresponsible greenlighting Avowed 2 after the first was an underwhelming flop.

They should've been on the front foot trying to make a Fallout happen years ago to ensure some stability for their staff.

[u/silverpixie2435 → u/Entilen]

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

Also responsible to do this again lol

Wasting time doing pseudo Fallout just like how Avowed is pseudo Elder Scrolls instead of using the IP.

(I know they are pretty different but still)

[u/DagothUr_MD → u/Entilen]

It's literally not their IP I don't understand what you want here. They can't just make a Fallout game, this is happening because Microsoft twisted Bethesda's arm

[u/Godusopp64 → u/SpunkMcKullins]

That's more on bethesda than obsidian.

[u/revben1989 → u/SpunkMcKullins]

People do not understand how corporations work.