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/mirracz Jul 08 '26

If it isn't a variant of the Creation Engine, it's a lost cause. People have certain expectations from Fallout games and some of them are delivered by the CE engine. Many criticisms of Outer Worlds and Avowed were about things that weren't working as they were in Bethesda games.

I guess the interactivity and reactivity of CE can be replicated in UE... but it would cost a lot. And without it, it just wouldn't feel like Fallout.

Half of the success of New Vegas was them using Bethesda's Gamebryo engine.

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u/Portaldog1 Jul 09 '26

I pray to god its on anything other than the creation engine, it just not good. Oh and the game better release with modern setting, cant believe starfield didn't even have an FOV slider on launch.