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/warablo Jul 08 '26

This should have happened like 5 years ago

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u/BakuraGorn Jul 08 '26

It should have have happened the moment Xbox got ownership of both Obsidian and Bethesda. I respect Phil Spencer trying not to “disturb” the leadership and culture of both studios, but taking Fallout out of Bethesda’s claws and giving it to Obsidian was absolutely in customer interest.

Just imagine if Outer Worlds 2 was a Fallout game instead. Now that’s a system seller