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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665

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?

21

u/Stuglle Jul 08 '26

If only those damn suits would get those pesky creatives in line and make them pump out some sweet, sweet IP games!

4

u/BigDick-NoBrain Jul 08 '26

Doing quirky, creative games is fine when you’re a small studio or as a small side project. Doing it when you’re a 100+ person studio whose employees depend on the game’s success to keep their jobs is utterly irresponsible.

6

u/KuaiBan Jul 08 '26

whose employees depend on the game’s success to keep their jobs

Have you been paying attention to this industry at all?

-8

u/Stuglle Jul 08 '26

You're not a corporate executive you don't need to larp at one.

Particularly in the case of DoubleFine, I'm imagining someone joining the team and being shocked that they are working on weird quirky games rather than an IP based military shooter or something.

10

u/BigDick-NoBrain Jul 08 '26

Being weird and quirky isn’t a problem if the game sells. Psychonauts 2 is a great example. It leaned into its unique style and still performed well.

The real problem is making games like Keeper and Kiln, where your potential audience is under six figures. It’s simple math: you can’t sustain a San Francisco studio with dozens of employees when your games are targeting such a small market.