Obsidian Entertainment is reportedly starting work on a new Fallout game that may serve as a sequel to Fallout: New Vegas [1, 2].

This shift in development represents a major pivot for the studio. The project comes as Obsidian redirects resources following Xbox layoffs and the cancellation of a planned sequel to the game Avowed [1, 4].

Director Josh Sawyer is reportedly leading the project [1]. The development is now feasible because Microsoft has housed both Obsidian and Bethesda under the same corporate roof within the Xbox division [1, 2].

Reports on the studio's internal enthusiasm vary. While some reports indicate work has begun [1], other accounts suggest that Obsidian may be reluctant to pursue the project [2, 3].

This potential release would end a long drought for the franchise. It has been more than 10 years since the last main Fallout release [5].

The transition to a new project highlights the volatile nature of development within the Xbox division. The move to a Fallout title follows a period of corporate restructuring that saw several projects scrapped or altered to fit new strategic goals [1, 4].

“Obsidian is reportedly starting work on a new Fallout game that may serve as a sequel to Fallout: New Vegas.”

The potential return of Obsidian to the Fallout series suggests a strategic consolidation by Microsoft to leverage the combined expertise of Bethesda and Obsidian. By pivoting away from the Avowed sequel, Xbox is prioritizing a high-value intellectual property with a proven fanbase to maximize the return on its studio acquisitions.