Obsidian New Fallout Game reportedly in development (2026). Published 7/9/2026, 7:12:34 AM | Updated 7/9/2026, 7:37:39 AM The Fallout franchise might be getting some long-awaited new chapter,and it's reportedly coming from the studio that made one of the most beloved RPGs of all time,at least in the minds of a lot of people. A few separate reports say Obsidian Entertainment has started work on an Obsidian new Fallout game, after Microsoft's big Xbox restructuring stuff went down. The rumored project is said to follow the studio quietly shelving a handful of in-development titles, like Avowed 2, so the team could re-allocate time and people toward one of gaming's biggest franchises. Now, nobody official has stepped up to say "yes", not Microsoft,not Bethesda,not Obsidian. Still,the reporting has kicked up a ton of buzz across the gaming community, mainly because the game is reportedly being steered by Josh Sawyer. He's the director behind the critically praised Fallout: New Vegas. So yeah, here's what Mobzway Technologies LLP know so far. Is Obsidian actually building a New Fallout Game? Per a Bloomberg report, later echoed by a bunch of well-known gaming publications, Obsidian Entertainment has shifted gears toward developing a Obsidian New Fallout Game entry. This shift is reportedly tied to Microsoft's continuing Xbox restructuring, the kind that brought thousands of layoffs, a mix of cancellations,and an even stronger push toward major first-party franchises. Bethesda Game Studios, of course, stays the main developer behind Fallout. But its internal team is reportedly pretty occupied with The Elder Scrolls VI right now. That's apparently what cleared the path for Obsidian, the same studio behind Fallout: New Vegas, to return to the wasteland. Why is Xbox giving Fallout to Obsidian? There are a few reasons that make this feel kind of logical, even if it sounds a bit unexpected at first. 1. Fallout: New Vegas is still seen as a masterpiece. Released back in 2010, Fallout: New Vegas is still considered one of the most respected RPGs ever made. Players keep praising it for - strong narrative moments - real player choice - multiple endings - unforgettable companions - solid roleplaying mechanics - great world building A lot of fans have been asking for another Fallout created by Obsidian, for more than ten years now. 2. Bethesda has a full pipeline schedule. Bethesda Game Studios is already busy with - ongoing support for Fallout 76 - development of The Elder Scrolls VI - additional future Bethesda projects So instead of Xbox having to wait several more years for Fallout to return, handing it over to another proven RPG team helps keep the franchise alive, you know, without the long delay. Josh Sawyer reportedly returns. Maybe the most interesting detail is the reported involvement of Josh Sawyer. He previously served as * Project Director, Lead Designer * for Fallout: New Vegas. And according to a Bloomberg report, he will reportedly lead development on the next Fallout title. This is after he worked on another RPG project that was structurally similar to Fallout, kind of like that. For longtime Fallout fans, this might be the most exciting part of the whole story, honestly. What happened to Avowed 2? The reported Obsidian New Fallout Game project brings some really, not great news for Avowed fans. A couple of different reports are saying that, basically: * Avowed 2 has been put on the shelf. * A handful of unannounced things got canceled. * Some developers are still there, doing maintenance tasks, sort of in the meantime while they wait for new chances to bring the sequel back. Bloomberg says Avowed 2 was actually moving along nicely inside, and it could've been announced in the next year too... up until Xbox changed its priorities. Xbox layoffs changed everything. This reported change lines up with Microsoft's big Xbox restructuring. New reports are mentioning * About 3,200 roles in Xbox are expected to go away during the restructuring stretch. * Obsidian reportedly lost around 25% of its workforce. * A bunch of Xbox studios have had layoffs or had projects canceled outright. * Microsoft is going harder on bigger franchises with wider commercial reach. Even with the layoffs, reports suggest Obsidian isn't being shut down, and it keeps working on stuff like Grounded 2, plus downloadable content tied to The Outer Worlds 2. Could this be Fallout 5? Right now, nobody outside Microsoft really knows what's going on. There are a few options people can point to, which are Fallout 5. The very long waited numbered follow up. Another spin-off. A standalone role playing game with the kind of vibe you'd expect from Fallout: New Vegas. New regional story. A totally different place, with new groups and characters. Reports haven't confirmed where Xbox wants to steer things next, not yet. What fans want most. Across Reddit, gaming forums, and social media, community chats kind of repeat the same wish list over and over: deep RPG mechanics, dialogue choices that actually matter, complex factions, big open-world roaming, dark humor, companion tales that feel alive, multiple endings, plus classic Fallout-style role-playing systems. A lot of people also seem to think Obsidian is kind of uniquely set up for this, because of its RPG history. Reactions have been mostly hype about Obsidian coming back to Fallout, but at the same time everyone quietly knows this is probably a long way off like, years away not months. Why this is such big news. The Fallout franchise hasn't gotten a fresh, new single-player RPG since Fallout 4 dropped in 2015. After that, things kinda split up: * Fallout 76 kept getting continuous updates. * The Fallout TV series brought in millions of brand new fans. * Overall interest in the franchise has climbed a lot. So a new Fallout, developed by Obsidian could ride that renewed attention, while also helping plug the hole until Bethesda's next major RPG shows up. Expected release window. Don't plan on this game anytime soon. Reports suggest development has only, recently started up. And with how huge modern AAA RPGs are, a realistic timing would likely be several years out, even if Microsoft and Obsidian have not shared any release target, not officially. Frequently asked questions. Is Obsidian making a new Fallout game? Yes, at least according to multiple reports that reference people familiar with the plans. That said, Microsoft, Bethesda, and Obsidian have not officially announced anything, not yet. Is Josh Sawyer involved? Reports say Josh Sawyer is going to lead the fresh Fallout project. But Mobzway Technologies LLP still don't have any formal confirmation, so take it as something in motion. Has Avowed 2 been canceled? From what's being reported, Avowed 2 has been shelved as Obsidian changes its focus, though some staff might keep doing limited work. The idea is that it could get revisited later, with better timing or resources. Is this Fallout 5? Nobody can say for sure. There's no official confirmation, so it could be Fallout 5, or it might be a separate, stand alone Fallout title. Either way, people are watching closely. Final thoughts. The claimed Obsidian new Fallout game is honestly one of the biggest RPG conversations of 2026. Even if the project hasn't been fully shown, the mix of Obsidian's roleplay strengths, Josh Sawyer's reported leadership, and the long lasting love for Fallout: New Vegas has created a ton of excitement. Still, the whole situation feels a little bittersweet. It reportedly comes after major Xbox layoffs, canceled plans, and those tough restructuring choices. Yet for Fallout fans, the thought of coming back to the wasteland, with a team tied to one of the franchise's most cherished entries is pretty thrilling. Until Microsoft and Bethesda formally reveal the game, it's smart to treat the current details as credible reporting, not confirmed announcements. Even so, if these reports end up being correct, Fallout's next chapter could again land in the hands of a studio that helped shape the series modern identity.

Microsoft's Xbox division is redirecting its Obsidian Entertainment studio to develop a new Fallout game, according to people familiar with the matter. The California-based studio has cancelled multiple projects as part of a broader restructuring. Obsidian, a Microsoft subsidiary, has also laid off approximately 25% of its workforce. The people requested anonymity as they were not authorised to speak publicly about the changes. The move represents a significant shift in strategy for the Irvine-based video game studio, which will now focus on the popular Fallout franchise.

Staff at Fallout: New Vegas developer Obsidian reportedly left unsure how 'huge list of projects' can continue after Xbox layoffs hit hard. July 8, 2026 Staff at Obsidian Entertainment are reportedly concerned about the studio's future projects after it was hit hard by Microsoft's Xbox layoffs. Yesterday, Microsoft gaming boss Asha Sharma announced the most "significant" restructure in Xbox history, with 1,600 staff let go immediately, and another 1,600 staff to follow over the course of the current financial year. As part of the restructure, four studios are leaving Xbox to new management, and one is now in consultation over its future. According to Kotaku, around 60-70 people were cut from Obsidian, which is the first-person role-playing game specialist behind Avowed, The Outer Worlds, Grounded, Pentiment, and, most famously, Fallout: New Vegas. Some of the staff who are leaving were Obsidian veterans. Kotaku quotes one person who said they were unsure how Obsidian's "huge list of projects" could continue following the cuts to the business. Obsidian has yet to announce a new game following the commercial failure of both Avowed and The Outer Worlds 2, but it is continuing to work on early access game Grounded 2 and The Outer Worlds 2 DLC. Could Obsidian be put to work on a brand new Fallout or The Elder Scrolls game, or support the development of new games made primarily elsewhere? Sharma has made it clear that Xbox wants to double down on its biggest franchises. Bethesda boss Jill Braff has told staff much the same. Without naming games, Braff said "to best position Bethesda for future growth, we are shifting from a planning model primarily centered on what's next for each independent studio to one that focuses on our strongest franchises and determining the content roadmap that best serves our players and Bethesda as a whole." "From there, we'll align the right talent, technology, and resources across the organization to deliver on those priorities," Braff added. Could Obsidian be roped in to help out? Could Microsoft give Obsidian the order to make Fallout: New Vegas 2? "I know everyone on the internet, on every game we ever announce, will constantly reference back to, 'When's the next New Vegas?'" Obsidian's VP of operations Marcus Morgan said last year, referencing the studio's beloved Fallout game that's served as the inspiration for the hit Amazon TV series' second season setting. There are also question marks over the mystery project Tim Cain, one of the creators of the original Fallout video game, rejoined Obsidian to work on in December 2025. Sharma has indicated that "none of our first party publicly announced games or projects are being cancelled as part of these reductions." Cain's project remains unannounced. Author: Wesley Yin-Poole Source: IGN Gaming Reviewed By: Editorial Team