According to a Bloomberg report, Obsidian Entertainment — the studio behind the acclaimed 2010 spin-off Fallout: New Vegas — is developing a new entry in the Fallout series. This matters because fans have long clamoured for another game in the vein of New Vegas, and with Bethesda occupied by The Elder Scrolls 6, a fresh Fallout title had not been expected any time soon.

The new project is reportedly being led by Josh Sawyer, who directed New Vegas, though plans remain at an early stage and could change. The shift comes after Xbox's major restructuring, which has seen the cancellation of a planned sequel to Obsidian's RPG Avowed and layoffs affecting around a quarter of the studio's staff. Most of Obsidian will focus on the Fallout game, with a smaller team supporting The Outer Worlds 2 and Grounded 2. It is not yet clear whether the title will be a spin-off or a mainline entry, there is no release window, and Microsoft declined to comment.