Microsoft is undergoing a significant restructuring of its Xbox division, which includes layoffs affecting approximately 3,200 employees and a shift in focus towards higher priority projects. As part of this change, Obsidian Entertainment, known for titles such as Grounded and The Outer Worlds, will begin development on a new Fallout game. This decision comes alongside the cancellation of multiple projects, including a sequel to Avowed, as reported by Bloomberg. The last game released in the Fallout series was Fallout 76 in 2018, despite the recent success of the Fallout television series, which is set to receive a third season. Josh Sawyer, the studio design director at Obsidian, will lead the development of the new Fallout title.
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Obsidian Entertainment Shifts Focus to New Fallout Title Amid Xbox Restructuring
Microsoft's Xbox division is restructuring, leading to layoffs and a shift in project priorities. Obsidian Entertainment will now focus on developing a new Fallout game, canceling several other projects, including a sequel to Avowed. The last Fallout game was released in 2018.
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Microsoft’s Xbox reset is pivoting Obsidian to make Fallout instead of Avowed
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Obsidian Entertainment Shifts Focus to New Fallout Title Amid Xbox Restructuring