- A report from Bloomberg suggests that Obsidian Entertainment is now working on a new Fallout game.
- This also comes with news about Obsidian's Avowed 2, which has been cancelled by Xbox.
- All of these changes are part of the larger restructuring over at Xbox.
The recent Xbox layoffs have already caused a massive shakeup at Obsidian Entertainment. Now, a new report suggests that Obsidian is changing priorities and focusing on developing a new Fallout game. This also comes with the unfortunate news that Obsidian’s upcoming sequel, Avowed 2, has been cancelled by Xbox.
Report Suggests New Fallout Game Will Be Directed by New Vegas Director
According to a new report by Bloomberg, the new Fallout game by Obsidian Entertainment will be led by Josh Sawyer. For any fans of the franchise, this is terrific news, as Josh Sawyer previously directed the acclaimed 2010 game Fallout: New Vegas. The title has aged perfectly over the years, and Josh Sawyer being at the helm makes the upcoming Fallout project worth being excited for.

Obviously, the details regarding the setting and storyline of Obsidian’s new Fallout game have not been revealed or hinted at in Bloomberg’s report. The report does reveal, however, that Josh Sawyer was previously working on an unannounced, original RPG that shared DNA with the Fallout universe. Now, that project has been shelved in favor of Sawyer’s official return to the Wasteland.
However, that isn’t the only title to be shelved. As previously mentioned, the sequel to Avowed is no longer in the works at Obsidian. The report reveals that the project was moving forward and was expected to be announced within the next year. Now, it looks like the project simply does not align with the new restructuring at Xbox. While a small skeleton crew might continue work on the project in case plans change, Obsidian will now primarily funnel its resources into the new Fallout game.
All of this news comes with an already chaotic week for Obsidian and Xbox as a whole, with recent Xbox layoffs causing around 25% of the studio’s workforce to be let go. Despite all of these changes, Obsidian is likely to continue work on existing content for The Outer Worlds 2 and Grounded 2.
At the time of writing, Microsoft or Obsidian has not come forward with a statement about the reported cancellations or the new Fallout game. Remember that, with everything going on over at Xbox, these plans are not set in stone and could change in the future.
Are you excited about a new Fallout game developed by Obsidian Entertainment? Tell us in the comments below!