Microsoft is shifting Xbox studio Obsidian Entertainment toward a new Fallout game as part of a broader restructuring of its gaming division. Obsidian has canceled several projects, including a planned sequel to its 2025 role-playing game Avowed, and laid off about a quarter of its workforce. Design director John Sawyer, who directed Fallout: New Vegas in 2010, is expected to lead the new Fallout title, potentially in collaboration with Bethesda Game Studios. The move follows Xbox Chief Asha Sharma's broader reset, which includes plans to cut 3,200 jobs and divest five studios, with more investment focused on major franchises like Fallout, which gained fresh momentum after Amazon's TV adaptation.
Microsoft CorporationMicrosoft shifts Obsidian to develop a new Fallout game, strengthening its major franchise portfolio.
Amazon.com IncAmazon's Fallout TV adaptation boosted franchise momentum, benefiting Amazon's streaming content.