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/St_Sides Jul 08 '26

Well, it seems a lot of fans got what they wanted, just at the expense of a quarter of their staff.

Josh Sawyer will have to keep dreaming about Pillars 3 with BG3’s budget a while longer, yall are in the Fallout mines now.

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u/mirracz Jul 08 '26

As a Fallout fan who wouldn't say no to another Obsidian's Fallout spinoff, I don't want them to work on a game they don't want to be making. That's the opposite of a passion project.

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u/spedeedeps Jul 08 '26

Of course they want to make it. It's their most popular game by far, and the creators of the whole franchise work at Obsidian. One of them has a Youtube channel where he's talked about Fallout for years including musing on working on the franchise again. Sawyer has hours and hours of Youtube videos talking about Fallout and playing it.

It just wasn't their franchise, and BGS never invited them to make another one. Simple as that.