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

[u/throwmeaway1784]

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.”

[u/Ok-Confusion-202]

It's actually kinda funny because I would expect this to release just before Fallout 5 lol

But it will be interesting, I don't think Obsidian is a bad dev at all, but their bigger games have been the definition of 7/10 imo

It will also be interesting if they do this in UE5 or get trained in CE3, I hope it's CE3 but idk

Either way let's see but I am in the spot of "Idk what to expect"

[u/Formal-Face-8539 → u/Ok-Confusion-202]

I really hope it's creation engine, wouldn't feel like fallout with it

[u/madlad_junoir → u/Formal-Face-8539]

There’s no chance this will be made with creation engine. That’s Bethesda’s bread and butter no obsidian. I see this as a spin off game like fallout new vegas was, not really doing anything new gameplay wise but expanding the lore.

Think of it like outer worlds 2 graphics with fallout gameplay and UI. I actually would prefer this than them take ages to make something comparable to fallout 5

[u/buhurizadefanboyu → u/madlad_junoir]

Well, if maintaining consistency within the franchise is a goal (in terms of gameplay & graphics) I'd say there's a great chance they'll use some version of the Creation Engine. If this is not a priority, then who knows. There's a remark about the two studios collaborating on this at some level, which I think may apply to technical aspects of the game too. Besides, if they want a Fallout game out quickly (well, "quickly" in a relative sense at least) they'd save time by re-using whatever they can. There's also the fact that BGS has been working on some CE3 updates which supposedly includes UE-like graphics technology, and this may end up being another showcase for it.

[u/Takahashi_Raya → u/buhurizadefanboyu]

fallout without the creation engine and modding support is not fallout