Obsidian Entertainment, the studio responsible for Fallout: New Vegas, is reportedly set to shift its development focus to a new Fallout game. According to a report from Bloomberg, this strategic change would mean that the studio's planned sequel to Avowed and other unannounced projects are being put on hold.
It remains unclear whether this new project will be Fallout 5 or a spin-off title. While Fallout 5 was reportedly greenlit a year ago, details regarding its lead developer were scarce. However, Obsidian CEO Feargus Urququhart publicly expressed interest in the studio developing another Fallout game in 2023. Studio design director Josh Sawyer, who previously directed Fallout: New Vegas and Pentiment, is said to be leading this new Fallout project. Sawyer was reportedly working on another RPG with Fallout-like similarities before being reassigned to this new endeavor.
Bethesda Game Studios, the current overseer of the Fallout franchise, will also be involved in this new project. The report emerges shortly after Obsidian experienced significant layoffs, with up to 25% of its workforce being terminated as part of an Xbox reset plan initiated by Xbox boss Asha Sharma. This broader plan is expected to result in the cutting of 3,200 jobs across Microsoft's gaming division over the next year. While Sharma indicated that no announced Xbox games would be canceled, unannounced titles are evidently subject to termination.
Xbox appears to be prioritizing investment in its major franchises, including Fallout. Speculation about a potential Fallout 3 remake has also circulated, though no official announcements have been made. This development coincides with the continued success of the Fallout franchise, evidenced by the Fallout TV series on Prime Video, which recently garnered 10 Emmy nominations for its second season.