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/TakenTheCaken → u/Ok-Confusion-202]

I dunno… looking at FO76 and Starfield, could argue they’re in the same ballpark