Obsidian Is Reportedly Developing a New ‘Fallout’ Game
Obsidian Entertainment may be making a return to the ‘Fallout’ universe, providing fans of the iconic role-playing series with exciting news. A report from Bloomberg indicates that the Xbox-owned studio is adjusting its plans as part of a broader company restructuring, with a new ‘Fallout’ game reportedly in the works.
This project is expected to be spearheaded by Josh Sawyer, Obsidian’s design director who previously contributed to ‘Fallout: New Vegas’. However, these plans are still in the early stages and could evolve before any official announcement is made.
The rumored ‘Fallout’ project emerges as Microsoft and Xbox implement significant changes within their gaming division. Bloomberg notes that Obsidian has canceled several projects during this restructuring, including a sequel to ‘Avowed’, the studio’s upcoming fantasy role-playing game set for 2025. Additionally, the company has reportedly downsized its workforce, affecting around a quarter of its employees.
For ‘Fallout’ enthusiasts, the prospect of Obsidian rejoining the franchise is particularly thrilling, given the studio’s history with the series. Obsidian developed ‘Fallout: New Vegas’ in 2010, which has since become a fan-favorite entry in the franchise, praised for its writing, characters, and player choices.
The new project is said to be linked to the broader ‘Fallout’ universe rather than being a standalone game inspired by the series. Prior to this shift, Sawyer was reportedly working on a different role-playing game that shared some elements with ‘Fallout’ but was not officially part of the franchise.
The ‘Fallout’ series has not seen a major single-player release in years, with the last mainline entry being ‘Fallout 4’ in 2015, while ‘Fallout 76’ debuted in 2018 as an online multiplayer experience. Since then, Bethesda Game Studios has focused on other projects while continuing to support ‘Fallout 76’ with updates and new content.
The franchise has also gained renewed interest thanks to the success of Amazon’s ‘Fallout’ television series, which has introduced the world to a broader audience. The show’s popularity has sparked increased interest in the games, and Microsoft is reportedly looking to invest more heavily in its flagship brands, including ‘Fallout’.

According to Bloomberg, Bethesda Game Studios will also collaborate on the new Obsidian project. Bethesda has held the rights to the ‘Fallout’ franchise for years, and this partnership could unite two studios with deep ties to the series.
The changes at Obsidian follow a challenging period for the studio. While they have released several games recently, Bloomberg reports that some titles did not meet commercial expectations. The planned ‘Avowed’ sequel was reportedly on track for a potential announcement within the next year but was canceled as part of Xbox’s new strategy.
Despite these cancellations, Obsidian will continue to support some of its ongoing projects. The studio is expected to keep working on downloadable content for ‘The Outer Worlds 2’ and further development on ‘Grounded 2’, its multiplayer survival game.
While there is currently no release date or official announcement for Obsidian’s anticipated ‘Fallout’ game, the return of the ‘New Vegas’ team could be just what fans have been longing for. If the project progresses, it could signify one of the most significant developments in the ‘Fallout’ franchise in years.
Have something to add? Let us know in the comments!
