{"id":38310,"date":"2026-07-09T01:03:05","date_gmt":"2026-07-09T01:03:05","guid":{"rendered":"https:\/\/gaitgames.com\/?p=38310"},"modified":"2026-07-09T01:03:05","modified_gmt":"2026-07-09T01:03:05","slug":"obsidian-entertainment-creating-new-fallout-game-after-avowed-sequels-cancellation-by-xbox","status":"publish","type":"post","link":"https:\/\/gaitgames.com\/?p=38310","title":{"rendered":"Obsidian Entertainment Creating New Fallout Game After Avowed Sequel’s Cancellation by Xbox"},"content":{"rendered":"
<\/div>\n

As Microsoft undergoes substantial organizational shifts within its gaming division, the future of prominent studios such as Obsidian Entertainment is becoming clearer. Renowned for its celebrated titles like *Avowed* and *The Outer Worlds*, Obsidian has recently altered its course, reportedly scrapping plans for a sequel to *Avowed* and refocusing efforts on a new *Fallout* game, a decision that has astonished fans and industry analysts alike.<\/p>\n

A report from *Bloomberg* indicates that Josh Sawyer, the studio design director at Obsidian, is poised to spearhead the development of this new entry in the *Fallout* franchise. This signifies a noteworthy return for Obsidian to the *Fallout* realm, having previously created *Fallout: New Vegas*, which debuted in 2010 and received widespread acclaim. However, sources caution that the overarching strategy for this project remains “in flux” and may change as time progresses. Sawyer had initially been overseeing a role-playing game (RPG) that shared characteristics with *Fallout*, but was not part of the Bethesda-owned universe.<\/p>\n

The motivation for this change is emphasized by recent layoffs impacting Obsidian’s team, with a WARN Act notice revealing that 52 individuals were released from the studio’s California office. This accounts for approximately a quarter of the workforce, underscoring the profound effects of the restructuring on Obsidian. The planned *Avowed* sequel was allegedly set for an announcement within the upcoming year; however, new leadership under Xbox CEO Asha Sharma seems to have determined it as non-essential to the company’s current agenda, especially since *Avowed* and its predecessor, *Pillars of Eternity*, lack the same influence as franchise mainstays within the Xbox lineup. Furthermore, there is speculation that the first *Avowed* did not achieve anticipated sales, influencing the decision.<\/p>\n

This transition to developing a *Fallout* game occurs at a moment when the franchise is experiencing a resurgence in popularity, particularly due to a successful TV adaptation available on Amazon’s streaming service. Still, with *Fallout 5* appearing to be on hold as Bethesda concentrates on *The Elder Scrolls VI*, there continues to be a desire for fresh content within the post-apocalyptic universe.<\/p>\n

Despite the transformations at Obsidian, *Bloomberg* states that Bethesda will still be involved in the new *Fallout* project, even as it concurrently works to bring *TES VI* to completion, a game that remains several years away from its launch. Under Sharma’s direction, Microsoft aims to hasten the development of its key franchises, which also includes significant titles like *Halo*, as part of its revised strategic vision moving forward.<\/p>\n","protected":false},"excerpt":{"rendered":"

<\/div>\n

As Microsoft undergoes substantial organizational shifts within its gaming division, the future of prominent studios such as Obsidian Entertainment is becoming clearer. Renowned for its celebrated titles like *Avowed* and *The Outer Worlds*, Obsidian has recently altered its course, reportedly scrapping plans for a sequel to *Avowed* and refocusing efforts on a new *Fallout* game, a decision that has astonished fans and industry analysts alike.<\/p>\n

A report from *Bloomberg* indicates that Josh Sawyer, the studio design director at Obsidian, is poised to spearhead the development of this new entry in the *Fallout* franchise. This signifies a noteworthy return for Obsidian to the *Fallout* realm, having previously created *Fallout: New Vegas*, which debuted in 2010 and received widespread acclaim. However, sources caution that the overarching strategy for this project remains “in flux” and may change as time progresses. Sawyer had initially been overseeing a role-playing game (RPG) that shared characteristics with *Fallout*, but was not part of the Bethesda-owned universe.<\/p>\n

The motivation for this change is emphasized by recent layoffs impacting Obsidian’s team, with a WARN Act notice revealing that 52 individuals were released from the studio’s California office. This accounts for approximately a quarter of the workforce, underscoring the profound effects of the restructuring on Obsidian. The planned *Avowed* sequel was allegedly set for an announcement within the upcoming year; however, new leadership under Xbox CEO Asha Sharma seems to have determined it as non-essential to the company’s current agenda, especially since *Avowed* and its predecessor, *Pillars of Eternity*, lack the same influence as franchise mainstays within the Xbox lineup. Furthermore, there is speculation that the first *Avowed* did not achieve anticipated sales, influencing the decision.<\/p>\n

This transition to developing a *Fallout* game occurs at a moment when the franchise is experiencing a resurgence in popularity, particularly due to a successful TV adaptation available on Amazon’s streaming service. Still, with *Fallout 5* appearing to be on hold as Bethesda concentrates on *The Elder Scrolls VI*, there continues to be a desire for fresh content within the post-apocalyptic universe.<\/p>\n

Despite the transformations at Obsidian, *Bloomberg* states that Bethesda will still be involved in the new *Fallout* project, even as it concurrently works to bring *TES VI* to completion, a game that remains several years away from its launch. Under Sharma’s direction, Microsoft aims to hasten the development of its key franchises, which also includes significant titles like *Halo*, as part of its revised strategic vision moving forward.<\/p>\n","protected":false},"author":1,"featured_media":38311,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-38310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/posts\/38310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38310"}],"version-history":[{"count":0,"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/posts\/38310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=\/wp\/v2\/media\/38311"}],"wp:attachment":[{"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaitgames.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}