Obsidian New Fallout Game Reportedly in Development (2026)
The Fallout franchise might be getting some long-awaited new chapter,and it’s reportedly coming from the studio that made one of the most beloved RPGs of all time,at least in the minds of a lot of people.
A few separate reports say Obsidian Entertainment has started work on an Obsidian new Fallout game, after Microsoft’s big Xbox restructuring stuff went down. The rumored project is said to follow the studio quietly shelving a handful of in-development titles , like Avowed 2, so the team could re-allocate time and people toward one of gaming’s biggest franchises.
Now, nobody official has stepped up to say “yes” , not Microsoft,not Bethesda,not Obsidian. Still,the reporting has kicked up a ton of buzz across the gaming community, mainly because the game is reportedly being steered by Josh Sawyer. He’s the director behind the critically praised Fallout: New Vegas.
So yeah, here’s what we know so far.
Is Obsidian Actually Building a New Fallout Game?
Per a Bloomberg report, later echoed by a bunch of well-known gaming publications, Obsidian Entertainment has shifted gears toward developing a Obsidian New Fallout Game entry.
This shift is reportedly tied to Microsoft’s continuing Xbox restructuring , the kind that brought thousands of layoffs, a mix of cancellations,and an even stronger push toward major first-party franchises.
Bethesda Game Studios, of course, stays the main developer behind Fallout. But its internal team is reportedly pretty occupied with The Elder Scrolls VI right now.
That’s apparently what cleared the path for Obsidian, the same studio behind Fallout: New Vegas, to return to the wasteland.
Why is Xbox giving Fallout to Obsidian ?
There are a few reasons that make this feel kind of logical , even if it sounds a bit unexpected at first.
1. Fallout: New Vegas is still seen as a masterpiece
Released back in 2010, Fallout: New Vegas is still considered one of the most respected RPGs ever made .
Players keep praising it for
- strong narrative moments
- real player choice
- multiple endings
- unforgettable companions
- solid roleplaying mechanics
- great world building
A lot of fans have been asking for another Fallout created by Obsidian, for more than ten years now.
2. Bethesda has a full pipeline schedule
Bethesda Game Studios is already busy with
- ongoing support for Fallout 76
- development of The Elder Scrolls VI
- additional future Bethesda projects
So instead of Xbox having to wait several more years for Fallout to return , handing it over to another proven RPG team helps keep the franchise alive, you know , without the long delay.
Josh Sawyer reportedly returns
Maybe the most interesting detail is the reported involvement of Josh Sawyer.
He previously served as
- Project Director, Lead Designer
- for Fallout: New Vegas.
And according to a Bloomberg report , he will reportedly lead development on the next Fallout title. This is after he worked on another RPG project that was structurally similar to Fallout, kind of like that.
For longtime Fallout fans , this might be the most exciting part of the whole story , honestly.
What Happened to Avowed 2?
The reported Obsidian New Fallout Game project brings some really, not great news for Avowed fans.
A couple of different reports are saying that, basically:
- Avowed 2 has been put on the shelf.
- A handful of unannounced things got canceled.
- Some developers are still there, doing maintenance tasks, sort of in the meantime while they wait for new chances to bring the sequel back.
Bloomberg says Avowed 2 was actually moving along nicely inside, and it could’ve been announced in the next year too… up until Xbox changed its priorities.
Xbox Layoffs Changed Everything
This reported change lines up with Microsoft’s big Xbox restructuring.
New reports are mentioning
- About 3,200 roles in Xbox are expected to go away during the restructuring stretch.
- Obsidian reportedly lost around 25% of its workforce.
- A bunch of Xbox studios have had layoffs or had projects canceled outright.
- Microsoft is going harder on bigger franchises with wider commercial reach.
Even with the layoffs, reports suggest Obsidian isn’t being shut down, and it keeps working on stuff like Grounded 2 , plus downloadable content tied to The Outer Worlds 2.
Could This Be Fallout 5?
Right now, nobody outside Microsoft really knows what’s going on.
There are a few options people can point to, which are
Fallout 5
The very long waited numbered follow up.
Another Spin-Off
A standalone role playing game with the kind of vibe you’d expect from Fallout: New Vegas.
New Regional Story
A totally different place, with new groups and characters.
Reports haven’t confirmed where Xbox wants to steer things next, not yet.
What Fans Want Most
Across Reddit, gaming forums, and social media, community chats kind of repeat the same wish list over and over: deep RPG mechanics, dialogue choices that actually matter, complex factions, big open-world roaming, dark humor, companion tales that feel alive, multiple endings, plus classic Fallout-style role-playing systems. A lot of people also seem to think Obsidian is kind of uniquely set up for this, because of its RPG history. Reactions have been mostly hype about Obsidian coming back to Fallout, but at the same time everyone quietly knows this is probably a long way off like, years away not months.
Why This Is Such Big News
The Fallout franchise hasn’t gotten a fresh, new single-player RPG since Fallout 4 dropped in 2015.
After that, things kinda split up:
- Fallout 76 kept getting continuous updates.
- The Fallout TV series brought in millions of brand new fans.
- Overall interest in the franchise has climbed a lot.
So a new Fallout, developed by Obsidian could ride that renewed attention, while also helping plug the hole until Bethesda’s next major RPG shows up.
Expected Release Window
Don’t plan on this game anytime soon.
Reports suggest development has only, recently started up.
And with how huge modern AAA RPGs are, a realistic timing would likely be several years out, even if Microsoft and Obsidian have not shared any release target, not officially.
Frequently Asked Questions
Is Obsidian making a new Fallout game ?
Yes, at least according to multiple reports that reference people familiar with the plans. That said , Microsoft, Bethesda, and Obsidian have not officially announced anything, not yet.
Is Josh Sawyer involved ?
Reports say Josh Sawyer is going to lead the fresh Fallout project . But we still don’t have any formal confirmation, so take it as something in motion.
Has Avowed 2 been canceled ?
From what’s being reported, Avowed 2 has been shelved as Obsidian changes its focus , though some staff might keep doing limited work. The idea is that it could get revisited later, with better timing or resources.
Is this Fallout 5 ?
Nobody can say for sure. There’s no official confirmation, so it could be Fallout 5, or it might be a separate, stand alone Fallout title. Either way, people are watching closely.
Final Thoughts
The claimed Obsidian new Fallout game is honestly one of the biggest RPG conversations of 2026. Even if the project hasn’t been fully shown, the mix of Obsidian’s roleplay strengths, Josh Sawyer’s reported leadership, and the long lasting love for Fallout: New Vegas has created a ton of excitement .
Still , the whole situation feels a little bittersweet. It reportedly comes after major Xbox layoffs, canceled plans, and those tough restructuring choices. Yet for Fallout fans , the thought of coming back to the wasteland , with a team tied to one of the franchise’s most cherished entries is pretty thrilling.
Until Microsoft and Bethesda formally reveal the game, it’s smart to treat the current details as credible reporting, not confirmed announcements. Even so, if these reports end up being correct, Fallout’s next chapter could again land in the hands of a studio that helped shape the series modern identity.
