Xbox is shifting corporate priorities to focus on its most prominent intellectual properties by tasking Obsidian Entertainment with the development of an entirely new Fallout game, according to a Bloomberg report published on July 9, 2026.
The upcoming project is structured as a brand-new entry within the franchise timeline rather than a remaster or remake of previous titles.
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Josh Sawyer, who previously served as the director for the critically acclaimed Fallout: New Vegas, is reportedly leading the development of this new title.
Journalist Jason Schreier of Bloomberg reported the strategic shift using internal sources who remained anonymous because they were not authorized to speak publicly on the matter.
"will begin working on a new game in the popular Fallout franchise as part of the division's broader restructuring" said Jason Schreier, Journalist at Bloomberg.
The strategic reallocation of development resources has direct consequences for other ongoing projects within the studio.
Production on Avowed 2, which had recently entered its early development phases at Obsidian Entertainment, is currently being wound down so that staff can be repurposed for the Fallout franchise.
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Prior to the cancellation, the development team under Sawyer was occupied with an independent project.
Schreier noted that before this decision was finalized, another roleplaying game was actively being created at the studio.
"Sawyer had been directing a roleplaying game that was similar structurally and thematically to Fallout but was not part of the franchise."
said Jason Schreier, Journalist at Bloomberg.
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Some employees at Obsidian Entertainment continue to perform introductory work on the Avowed sequel while the studio completes its administrative and technical transition toward the upcoming Fallout title.
