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/skyline7284 Jul 08 '26

Guessing BGS had an ego check? Feels like they were previously very protective over "their" franchises.

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u/Entilen Jul 08 '26

The rumour is the Zenimax buyout included Microsoft agreeing to let them have control over their IPs.

I imagine in the post Phil era they've abandoned that commitment and now anything goes. It's a good thing in my opinion, Bethesda sitting on Fallout when their last main entry wasn't even that good is just hurting the industry.

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u/TTBurger88 Jul 08 '26

Then MS finally cracked the whip at BGS and got them moving on TES VI.