Obsidian Entertainment, the studio behind Fallout: New Vegas, has been tasked with developing a new entry in the Fallout series, according to Bloomberg reporting. The project will be led by Josh Sawyer, director of New Vegas, marking a strategic pivot for Microsoft's gaming division at the studio.
With roughly 25% of its workforce cut during Xbox's recent layoffs, Obsidian has canceled multiple projects in development, including a planned sequel to Avowed and other unannounced titles. The move reflects new Xbox CEO Asha Sharma's effort to refocus the portfolio on franchises with the highest potential.
Sawyer was previously working on another RPG structurally similar to Fallout prior to this shift. The decision positions New Vegas as a reference point for the series' future, with Sawyer's expertise central to creative direction on the new installment.
While no official details about the game have been confirmed, this announcement underscores Microsoft's internal adjustments in response to underwhelming results from prior strategies, as indicated by Sharma's statements about concentrating resources on core franchises.
