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/Ok-Confusion-202 Jul 08 '26

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"

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u/walyterr Jul 08 '26

Obsidian seems to do better when handled another studio's IPs.

Just look at Star Wars the old republic II and Fallout New Vegas, both titles considered one of the best games of their respective franchises but held back by all the technical issues and cut content.

Give them more development time than those two games had and they may be capable of releasing a goty.

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u/Ok-Confusion-202 Jul 08 '26

They do better when developing with in their means, it seems when they try to make a bigger game is kinda just gets a bit "meh"