Obsidian Entertainment is reportedly shifting its development focus to a new entry in the Fallout franchise, a move that has led to the cancellation of a sequel to its role-playing game Avowed. This strategic realignment follows significant layoffs at Xbox, which saw Obsidian lose approximately a quarter of its staff, according to a Bloomberg report.
The decision to move Obsidian onto Fallout aligns with Xbox's stated strategy of concentrating on its most significant franchises. The project is understood to be a new installment in the series, rather than a remaster of an existing title. The report indicates that Josh Sawyer, studio design director and veteran of the Fallout series, will lead the development of this new Fallout game. Sawyer previously directed Fallout: New Vegas, a title widely celebrated for its narrative depth and player choice, and was also leading another canceled RPG project with thematic and structural similarities to Fallout.
Avowed, which was scheduled for a potential unveiling in 2027, had reportedly been in good development. However, the cancellation of its sequel, alongside other projects, is a consequence of the studio's altered priorities and the impact of the recent staff reductions.
Fallout remains a cornerstone of the Xbox brand, particularly in light of the recent success of its live-action television adaptation. Obsidian's established history with the franchise, demonstrated by the critical acclaim of Fallout: New Vegas, positions them as a logical choice to helm the next installment. This move allows Bethesda Game Studios to concentrate on The Elder Scrolls 6, while Obsidian takes the lead on the next chapter for Fallout.