Obsidian Entertainment is reportedly in development on a new Fallout game, with Josh Sawyer, director of Fallout: New Vegas, set to lead the project. This shift comes after Microsoft canceled a sequel to Obsidian's recent RPG, Avowed, and implemented significant layoffs at the studio. A report from Bloomberg, referencing a California WARN notice, indicates that approximately 25% of Obsidian's workforce was affected by these cuts.
The cancellation of the Avowed sequel is among multiple unannounced projects that have been shelved. The report suggests that development resources are now being redirected toward the new Fallout title. Sawyer, who has a notable history with the Fallout franchise, has previously expressed openness to leading a new installment under the right conditions.
The circumstances surrounding these changes raise questions about the impact on the studio's morale and the creative direction of the new project. Employees were reportedly let go as part of broader Xbox layoffs, leading to a significant reduction in the studio's personnel.
Obsidian has not yet officially commented on the reports. In the interim, the studio's recent title, Pentiment, which was directed by Josh Sawyer, has been highlighted as an example of the studio's output when operating under different circumstances. The game is currently available at a reduced price during the Steam Summer Sale.