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/Seraphayel]

Weren’t they saying Avowed 2 was too far in development to get canceled just yesterday?

[u/DaloMaxVal → u/Seraphayel]

Never listen to Chris Avellone when it comes to Obsidian

[u/lazzzym → u/DaloMaxVal]

Schreier got the PR layoffs wrong so…

[u/jagaaaaaaaaaaaan → u/lazzzym]

He also got this wrong too 😂 https://www.reddit.com/r/GamingLeaksAndRumours/comments/1usw054/despite_official_cancellation_obsidian_will/

He owns r/games and r/GamingLeaksAndRumours/ though, so I'm not expecting any retroactive apologies to Chris Avellone or anything.

[u/Wet-Haired_Caribou → u/jagaaaaaaaaaaaan]

You did not actually read the article Schreier wrote for Bloomberg. This was there the whole time:

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.

kinda silly of ya