Microsoft's Xbox Revamp Shifts Obsidian to Fallout Development
Microsoft's Xbox division is undergoing significant changes, including layoffs and strategic shifts, which will see Obsidian Entertainment pivot to developing a new Fallout title. Several projects, including an Avowed sequel, have been canceled.
As part of a broader strategic reset within Microsoft's Xbox division, which includes substantial layoffs and a focus on higher-priority projects, Obsidian Entertainment is altering its development pipeline.
The studio, known for titles like Grounded and The Outer Worlds, will now begin work on a new game in the Fallout series. This shift means the cancellation of multiple ongoing projects, including a planned sequel to last year's RPG, Avowed.
The move comes as Xbox seeks to reinvigorate the Fallout franchise, which has not seen a new mainline release since Fallout 76 in 2018, despite recent success with the Fallout television adaptation.
According to reports, Josh Sawyer, Obsidian's studio design director, will lead the new Fallout project. This reorganization reflects Xbox's commitment to concentrating resources on key initiatives within its gaming portfolio.