Multiple reports say Microsoft’s Xbox is pivoting Obsidian Entertainment from its planned Avowed sequel to a new Fallout game. Bloomberg reports that Xbox shifts the studio’s work toward a Fallout title while canceling a planned Avowed sequel. The Verge similarly reports that as part of a broader Xbox “reset”—including studio changes and a shift toward higher-priority projects—Obsidian starts work on a new Fallout installment and cancels multiple projects. Engadget and other outlets echo the same core development plan, stating that Obsidian’s focus changes from an Avowed sequel to a Fallout game.
The reporting also links the pivot to the impact of Xbox-related layoffs. Engadget notes that the Fallout: New Vegas developer has not escaped Microsoft’s Xbox layoffs unscathed, while The Verge describes a wider reorganization that includes layoffs affecting thousands of employees and reductions in studio investments. Across sources, details about the new Fallout game’s release timing, gameplay scope, or leadership are not specified.
