Xbox Reportedly Reassigns Obsidian to a New Fallout Mainline Project

Xbox has been going through a rough patch lately, with layoffs and internal reshuffling aimed at tightening focus on its biggest franchises. Halo, The Elder Scrolls, Doom, and Wolfenstein have all been brought up as key pillars, and Fallout is included in that list too—despite the fact that it’s been more than ten years since a true new mainline entry landed.

Right now, Bethesda is occupied with The Elder Scrolls 6, so many expected Fallout would have to wait a long time—potentially another decade—before a proper follow-up appears. However, recent reporting suggests that timeline may be moving faster. The latest claim is that Obsidian has been given the go-ahead to build another full-scale Fallout game.

Xbox Has Reportedly Greenlit An Obsidian Fallout Game

The information comes from a report by Jason Schreier, who says Obsidian is actively working on a new Fallout project and that the approval has come with a notable price tag. In the same wave of updates, it’s also been claimed that Xbox cancelled a planned sequel to Avowed. On top of that, over 50 employees have reportedly been laid off at Obsidian, which is said to represent about a quarter of the studio’s total workforce.

Fallout: New Vegas

Marcus Chen is a gaming journalist and industry reporter with more than 10 years of experience. He covers releases, announcements, and trends across PC, PlayStation, Xbox, and Nintendo, and keeps a close eye on the indie scene and esports. Previously an editor at several gaming publications, he now writes news, reviews, and breakdowns of major industry moments—from big showcases to updates on popular titles. His work is aimed at players who want a clear, fast read on what happened and why it matters.