Obsidian Entertainment is reportedly shifting its development focus to a new Fallout game, following recent Xbox layoffs and the cancellation of Avowed 2, according to a report by Beebom.
This strategic pivot comes as Xbox undergoes significant restructuring, impacting project priorities across its studios. The reported change indicates a potential redirection of resources towards the established Fallout franchise, a move that could excite fans of Obsidian’s previous work in the series.

The report from Beebom suggests that the internal shakeup at Obsidian Entertainment, an Xbox Game Studios subsidiary, has directly led to these development changes. The cancellation of Avowed 2, a sequel to the upcoming fantasy RPG, frees up development capacity for other projects.
Obsidian Entertainment has a notable history with the Fallout series, having developed Fallout: New Vegas, which was released in 2010. That title is widely regarded for its narrative depth and player choice.
The move to a new Fallout game aligns with the franchise’s continued popularity, recently bolstered by the Amazon Prime Video series. Bethesda Softworks, the series owner, has seen renewed interest in its titles.
Specific details regarding the new Fallout game, such as its setting, gameplay, or release window, were not immediately available. Obsidian Entertainment’s official website provides information on their other projects, including Avowed. Obsidian Entertainment continues to develop several titles under the Xbox umbrella.


