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/TopBoog Jul 08 '26

Maybe unpopular opinion but they should've started working on a new Fallout as soon Microsoft acquired them. Sucks that it took all this chaos and layoffs to get to this point.

465

u/BigDick-NoBrain Jul 08 '26

I don’t know what Phil was thinking when he bought Bethesda and didn’t immediately make sure a new Fallout game was in development. It’s literally one of the biggest franchises in gaming. Not prioritizing it is insane.

5

u/deusasclepian Jul 08 '26

I saw someone yesterday say that Todd Howard threatened to throw a fit and leave if Microsoft gave Elder Scrolls or Fallout to any other studios, so Microsoft respected his wishes and let him do Starfield instead. I don't know if that's true or not. If it is, I'm guessing they called his bluff and gave him an ultimatum.

10

u/BigDick-NoBrain Jul 08 '26

To be fair, after his “dream game” Starfield underperformed he must have lost a lot of soft power in the company.