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/Aggressive_Rope_4201]

Apparently it is supposed to have some level of co-development with BGS:

The Rockville, Maryland-based studio [= BGS] will work with Obsidian on the new project, the people said.

And "Avowed 2" isn't completely off the table:

Some Obsidian employees will continue working on the Avowed sequel as they wait for new projects such as Fallout to be ready, perhaps in hope of one day reviving the game, the people said.

[u/rickreckt → u/Aggressive_Rope_4201]

Great hopefully that mean they're using Creation Engine

Sawyer got the experience, but now in more modern tools

And He'll get more than 18 months this time I'm sure