Fresh Fallout role-playing game reportedly under way at Obsidian as Avowed sequel is scrapped
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A new Bloomberg report claims that Obsidian Entertainment, the Microsoft-owned studio behind Fallout: New Vegas, has begun work on a fresh Fallout role-playing game as part of a wider restructuring. The shift comes at a cost, however, with a planned Avowed sequel and other unannounced projects reportedly cancelled and around a quarter of the studio's workforce lost to layoffs. The move matters because it returns the storied Fallout series to a developer many fans regard as its strongest custodian, while signalling significant upheaval within the studio.
According to reporter Jason Schreier, Josh Sawyer — known for New Vegas and the Pillars of Eternity games — is set to lead the new project, which is only at the earliest stages of development, making a public showing unlikely for some time. The Avowed follow-up was said to be progressing well and had been on course for a reveal within 12 months, but it did not fit executive Asha Sharma's strategy; a small number of staff will reportedly keep it alive until the Fallout project needs more hands. Separately, there are strong rumours of a Fallout 3 remake in production, with a possible launch in the next few years.
- Obsidian is reportedly making a new Fallout RPG, led by Josh Sawyer.
- An Avowed sequel and other projects were cancelled amid heavy layoffs.
- Development is early, so a public reveal remains a long way off.
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Obsidian Entertainment is the studio behind Fallout: New Vegas, a spin-off widely regarded as one of the best games in the long-running Fallout series. Obsidian is owned by Microsoft and, more recently, made Avowed, a separate fantasy role-playing game released in 2025. Reports suggest the studio is now shifting focus back towards Fallout.
Josh Sawyer is a veteran Obsidian designer who worked on New Vegas and the Pillars of Eternity series, and is named as the person leading this new project. Asha Sharma is a Microsoft gaming executive whose strategic decisions are said to be shaping which projects at Obsidian go ahead. Jason Schreier is a journalist known for reporting on the games industry, including internal studio decisions not otherwise made public.
This matters because it touches on the future of Fallout, a franchise with a large and dedicated fanbase, as well as on how Microsoft manages the studios it owns after several rounds of layoffs and cancellations across its gaming division in recent years. Any changes at Obsidian can affect staff livelihoods, delay or end games players were anticipating, and shape which studio ultimately gets to make the next major Fallout title.
More coverage
- PC Gamer — Obsidian is reportedly making a new Fallout game headed by Josh Sawyer after Microsoft pulled the plug on an Avowed sequel
- Engadget — Microsoft reportedly cancels Avowed sequel as Obsidian focuses on a Fallout game
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Originally published by Push Square as “Rumour: New Fallout Game from Obsidian in the Works, But Has to Cancel Avowed Sequel”.