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Obsidian reportedly shifts focus to new Fallout sport as different initiatives are canceled

July 9, 2026
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In keeping with a brand new report from Bloomberg’s Jason Schreier, Microsoft is shifting Obsidian Leisure towards improvement on a brand new Fallout sport, with a number of different initiatives being canceled as a part of the transfer.

The report claims that one of many video games affected is a deliberate sequel to Avowed, Obsidian’s fantasy RPG set within the Pillars of Eternity universe. Whereas Avowed solely launched in 2025, and reportedly had a follow-up that was progressing effectively sufficient to probably be introduced throughout the subsequent 12 months, it seems Xbox has determined that, in its newest spherical of cuts, Fallout is now the larger precedence.

Obsidian Fallout sport reportedly in improvement

The largest a part of the report is that Josh Sawyer is alleged to be main the brand new Fallout mission. When you’re a fan of the franchise, Sawyer is a vital identify right here, as he beforehand directed Fallout: New Vegas, which many nonetheless think about one of many, if not the strongest sport in the whole collection.

That immediately makes this extra than simply one other studio making Fallout. Obsidian returning to the franchise has been one thing followers have wished for years, particularly after Microsoft ended up proudly owning each Bethesda and Obsidian.

There are not any particulars but on what sort of Fallout sport this might be, or whether or not that is even being handled as a full mainline entry. So, as a lot as everybody’s brains will instantly bounce to New Vegas 2, that has clearly not been confirmed.

As beforehand talked about, the transfer does come at a fairly large price. Alongside the Avowed sequel reportedly being shelved, different unannounced Obsidian initiatives have additionally been canceled. The studio has additionally been hit by layoffs, making this potential new Fallout entry even more durable to cheer for.

For now, Obsidian continues to be anticipated to proceed work on Grounded 2 and DLC for The Outer Worlds 2. But when the report proves correct, the studio’s subsequent main mission may very well be again within the wasteland.



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