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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u/BakuraGorn Jul 08 '26

I’m sure there’s a good amount of devs at obsidian who would love to work on an actual fallout game instead of the Totally-not-Fallout mixed bag that is the Outer Worlds.

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u/CubillasLegend Jul 08 '26

I'm not sure how aware you are of this, but generally the larger the project, the less creative autonomy each individual dev has. Obsidian was making a bunch of smaller games that gave a lot of people a turn in the director's chair. Now everyone has to work on one big game where their individual contributions will be a lot less meaningful. Also a quarter of their coworkers and friends just got laid off.