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Gamespot
New Fallout Game Is New Focus For New Vegas Developer Obsidian Entertainment
Obsidian Entertainment, known for titles like The Outer Worlds, is reportedly pivoting to develop a new Fallout game. As a result, their planned sequel for Avowed and other unannounced projects will be shelved. Josh Sawyer, who has previously directed New Vegas, will lead the new Fallout project. This decision comes in the wake of significant layoffs at Xbox, indicating a strategic focus on major franchises during challenging times within the company.
MonitorConfidence: HighMid term horizonTalent displacement risk: High
Published 8 Jul 2026, 19:55 UTC1 min read
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Summary
TL;DR
- Obsidian Entertainment shifts focus to a new Fallout game.
- Avowed sequel and other projects are shelved.
- Josh Sawyer will lead development of the new Fallout title.
- Recent layoffs affected 25% of Obsidian's workforce.
- Xbox is investing in its major franchises amid restructuring.
Interesting facts
- This marks a significant strategic shift for Obsidian Entertainment.
- Josh Sawyer's return to the Fallout franchise generates excitement.
- The Fallout TV series has received notable Emmy recognition.