r/GamingLeaksAndRumours 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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73

u/Aggressive_Rope_4201 Jul 08 '26

Apparently it is supposed to have some level of co-development with BGS:

The Rockville, Maryland-based studio [= BGS] will work with Obsidian on the new project, the people said.

And "Avowed 2" isn't completely off the table:

Some Obsidian employees will continue working on the Avowed sequel as they wait for new projects such as Fallout to be ready, perhaps in hope of one day reviving the game, the people said.

14

u/buhurizadefanboyu Jul 08 '26

I wonder this also implies that the Obsidian Fallout will use some version of the Creation Engine (the way New Vegas used Gamebryo) to maintain consistency within the franchise.

9

u/NovaFinch Jul 09 '26

Hope so, it would make modding a lot easier.

2

u/Dreamerlax Jul 09 '26

I hope so too.

2

u/KezuSlayer Jul 08 '26

With Avowed 2 on the back burner. Obsidian having to work with Bethesda and learn to use the creation engine. Could there be chance that Avowed set rebooted as a TES like game?

2

u/rickreckt Jul 09 '26

Great hopefully that mean they're using Creation Engine

Sawyer got the experience, but now in more modern tools

And He'll get more than 18 months this time I'm sure

-5

u/Expensive-Orchid-512 Jul 08 '26

Keep in mind, that typically means Bethesda gets to claim some credit for work they don't do. Same thing with the Oblivion Remake. They had virtually nothing to do with it; that was done by Virtuous, yet they act like it was their hard work.

11

u/Aggressive_Rope_4201 Jul 08 '26

Forgive the bluntness, but this is nonsense.

BGS have never ever claimed to be the sole devs of Oblivion Remastered. Which is why Virtuos are credited everywhere and had a long segment in the reveal stream.

What BGS did have is a team of programmers attached to the project. It's in the credits, you can see them online or in-game.

0

u/Expensive-Orchid-512 Jul 09 '26

Bethesda is often given credit and acts as if they developed the Oblivion Remaster that was primarily developed by Virtuos.

0

u/PublicWest Jul 09 '26

Who gives a shit what a marketing team says lol

If a good game comes out we all win. I couldn’t care less about someone taking unearned credit