Reports suggest that Obsidian Entertainment is in line to develop a new Fallout game, with Josh Sawyer, the director of the acclaimed Fallout: New Vegas, reportedly at the helm. This potential project emerges as part of a broader restructuring within Microsoft's Xbox division.

The situation remains fluid, according to initial reports, and could be subject to change. However, if Obsidian and Sawyer do proceed with a new Fallout title, it would mark a significant return for the studio to the franchise that garnered widespread praise for New Vegas.

This development, however, is shadowed by substantial layoffs across Xbox, impacting Obsidian itself. The studio has reportedly cancelled projects, including a sequel to Avowed, to reallocate resources towards this potential Fallout endeavor. The context of these studio changes has tempered immediate enthusiasm for the prospect of a new Obsidian-made Fallout game, with some sources expressing ambivalence due to the circumstances surrounding the project's initiation.

The absence of a new Fallout game has been noted, particularly following the success of the recent Fallout television series. The possibility of Obsidian, a developer with a proven track record in the genre, taking on the franchise has been a long-standing hope for many fans.

Fans are weighing in on the news, with mixed feelings arising from the combination of a potentially exciting new game and the difficult realities of studio consolidation and workforce reductions within Xbox. The future of this reported project remains uncertain as the situation continues to develop.