Josh Sawyer Reportedly Leads New Fallout Entry as Xbox Reshuffles Obsidian
A fresh report claims Xbox is steering one of its most prominent RPG studios back toward Fallout, with Fallout: New Vegas director Josh Sawyer reportedly tapped to head a brand-new entry. The move is being framed as part of a wider Xbox shake-up: Microsoft is said to be restructuring the division, canceling several Obsidian Entertainment projects, and shifting resources toward its most recognizable long-running franchises.
The rationale is presented as straightforward. Xbox wants Bethesda to prioritize major recurring series like Fallout and The Elder Scrolls, and the franchise hasn’t seen a new numbered mainline release since Fallout 76 launched in 2018. During that stretch, Bethesda has focused on Starfield and The Elder Scrolls 6. Meanwhile, Amazon’s Fallout television show brought in a new wave of players to the post-apocalyptic RPG world, boosting activity in older Fallout titles and helping keep the series among Xbox’s biggest long-term bets. Still, players have continued to ask for a new game, with no official release yet to satisfy that demand.
There’s also an intriguing claim: Fallout 3 is said to exist, with observers reportedly having seen gameplay footage, though the current state of the project remains unclear.
Obsidian Entertainment is Working on a New Fallout Game
- Image via Obsidian
- Image via Bethesda
- Image via Bethesda
- Image via Bethesda
A report says Obsidian Entertainment has canceled multiple projects as part of Xbox’s broader internal restructuring, including a planned sequel to 2025’s Avowed. It further claims that around a quarter of the studio’s employees were let go. Under Xbox CEO Asha Sharma’s approach—placing heavier emphasis on major franchises—Obsidian is reportedly moving to work on a new Fallout game alongside Bethesda Game Studios.
- Fallout: New Vegas director Josh Sawyer is reportedly set to lead the project.
- Bethesda Game Studios is expected to collaborate with Obsidian on development.
- Avowed 2 is reportedly canceled even though it had reportedly progressed well internally.
- Multiple additional unannounced projects were also shelved.
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For long-time Fallout fans, the biggest headline is Sawyer’s involvement. Sawyer previously directed Fallout: New Vegas, a fan-favorite entry that remains widely praised more than 15 years after release. Even though Bethesda has held control of Fallout since acquiring the IP, this would reportedly bring Obsidian back to the series for the first time since 2010—effectively reuniting one of the franchise’s most celebrated teams with the world that helped define its reputation in the modern era.
That said, the restructuring doesn’t mean Obsidian is fully walking away from everything else. The report states the studio will continue supporting The Outer Worlds 2 with post-launch downloadable content, while remaining involved with Grounded 2. It also suggests that developers previously assigned to Avowed 2 are being shifted to other work as they wait for larger initiatives—including Fallout—to ramp up. That leaves open the possibility that the fantasy RPG sequel could return later in some form, but for now, Fallout is described as the priority.
Overall, the picture painted is that Xbox is tightening focus on franchises with proven audiences—and few have as much built-in momentum as Fallout. After all the uncertainty to this point, the franchise may finally be in line for something players have wanted for more than a decade: a new Fallout built by the same creative team behind Fallout: New Vegas.
