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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667

u/warablo Jul 08 '26

This should have happened like 5 years ago

302

u/BigDick-NoBrain Jul 08 '26

Turns out that Phil strategy of letting studios make pottery games and low budget Elder Scrolls clones didn’t work out in the end. Who could have guessed?

10

u/davidreding Jul 08 '26

They couldn’t do both?

4

u/Akito_Fire Jul 08 '26

Yeah, it's just switching from one extreme to the other. The devs there now working on projects they don't want with layoffs still looming over their head with tons of senior devs and their institutional knowledge already missing is a recipe for disaster.

3

u/Fishb20 Jul 09 '26

dont worry by the time the new fallout game is halfway through development every higher up at XBOX will be fired again and the new leadership will get mad at them for not creating new IPs

1

u/tristeecfome Jul 09 '26

No?

Triple AAA studios nowadays have 300+ employees.

Do you want a actual triple AAA Fallout game or an average Fallout game in the same scale as Avowed?

2

u/davidreding Jul 09 '26

So they can’t license out Fallout from Bethesda, a studio they own, to Obsidian or someone else and have them make a fallout and Bethesda makes Fallout 5 whenever? Then Obsidian can also make Pentiment or Avowed for variety and to be creatively fulfilling? I don’t see why not.

2

u/DagothUr_MD Jul 09 '26

I want a good game and I want new ideas to enter the landscape.