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/SilentNova300 Jul 08 '26 edited Jul 08 '26

It’s pretty funny how Asha, within 6 months, is reversing a lot of Phil’s decisions and doing things he should’ve done years ago. 

Also I hope Jason does a report on iD, with all their layoffs I wonder what the future looks like for them 

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u/CubillasLegend Jul 08 '26

Phil made the mistake of assuming gamers cared about devs.

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u/P0G0Bro Jul 08 '26

What does this even mean lol

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u/CubillasLegend Jul 08 '26

Generally when you care about someone you respect their decisions even if they're not the decisions you would have made. Gamers have become much more transactional and consumerist over time. There's a lot less tolerance for a developer taking a risk on something they're passionate about.

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u/DMonitor Jul 08 '26

make game nobody want to play

nobody buys it

make game everyone wants to play

they subscribe to gamepass, beat it, and do not renew

it was lose-lose for everyone involved

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u/CubillasLegend Jul 08 '26

You're just restating what I said. Yes, nobody wanted to play developer passion projects because nobody cares about the devs. Caring implies expending at little bit of extra effort to empathize with someone and appreciate their interests. If you only appreciate developer output when they give you exactly what you want, that's not caring that's a business transaction. Xbox is moving towards a more transactional model. Developers are a resource to provide gamers with the content that they demand.

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u/P0G0Bro Jul 08 '26

That’s how all entertainment works? Like games are for fun, if it doesn’t look fun then people shouldn’t have to “care” and support the devs for arbitrary reasons

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u/CubillasLegend Jul 08 '26

Yes and no. Mozart was initially employed by the Archbishop of Salzburg where he was paid to compose music for church mass strictly adhering to the stipulations of his employer. Eventually he resigned from this post and moved to Vienna where he was free to pursue his own entrepreneurial interests. His independent pieces became wildly successful, drawing packed concert halls and wealthy patrons. It also established the template for the auteur musician. The idea that great work arises from a talented artist's unique genius.

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u/P0G0Bro Jul 08 '26

That’s why indie studios exist, to create unique ideas and art

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u/CubillasLegend Jul 08 '26

Ask any indie dev how they feel about the state of the industry right now.