According to Bloomberg's Jason Schreier, Microsoft has canceled multiple Obsidian Entertainment projects to start to have the veteran RPG studio begin work on a new game in the Fallout franchise.
This comes in a turbulent time for Microsoft/Xbox. They recently shed four studios through sale or letting them revert back to being independent, on top of laying off 1600 employees with 1600 more planned over 2026-2027's fiscal year.
Obsidian was not immune to the layoffs either, with about a quarter of their team let go, per Schreier.
Several of the projects were unannounced, but Schreier reports that one of them was a planned sequel to Avowed, a new RPG franchise that launched last year to moderate success.
Fans have been calling for Obsidian to return to Fallout for many years, as many fans argue their 2010 game Fallout: New Vegas is the best in the series. Unfortunately, this seems to have been at the expense of other games and franchises. Since New Vegas, Obsidian has launched several new franchises, such as Pillars of Eternity, The Outer Worlds, Grounded, Avowed, and others like the niche critical hit Pentiment.
Schreier also reports that Josh Sawyer has been tapped to lead...
