New Fallout Game Reportedly in Development as Bethesda and Obsidian Reunite
New Fallout Game – Bloomberg’s Jason Schreier reports that Fallout: New Vegas could be finally getting a new chapter. The report claims that Obsidian Entertainment is developing a new Fallout game with Josh Sawyer, the director of Fallout: New Vegas, leading the project. While neither Microsoft, Xbox, Bethesda, nor Obsidian has officially confirmed the game, the report says the project began after Xbox restructured its gaming division and shifted Obsidian’s focus toward one of Microsoft’s biggest franchises. The game is reportedly still in early development, meaning plans could change before any official announcement.
Why the Report Matters
The reported project arrives during a major restructuring at Microsoft, where around 3,200 jobs were eliminated across the gaming business. Bloomberg also reported that roughly one-quarter of Obsidian’s workforce was affected by layoffs. As part of the changes, a planned sequel to Avowed was reportedly canceled, with some developers reassigned to other projects. Despite those changes, Obsidian is expected to continue supporting The Outer Worlds 2 with post-launch DLC and remain involved with Grounded 2.
The report also claims Josh Sawyer had been working on a new original RPG before Xbox redirected the team toward Fallout. Bethesda Game Studios is reportedly collaborating with Obsidian, although Xbox declined to comment. The project is still very young so there is no release window or confirmed platforms.
Fallout’s Growing Momentum
The Fallout franchise has seen a huge uptick in interest following the success of the Fallout TV series on Prime Video. Season 2 is set in New Vegas, helping to introduce the iconic location to new audiences, while also bringing longtime fans back to Fallout: New Vegas, which originally released on October 19, 2010. Bethesda also recently released a promotional Fallout trailer featuring actor Aaron Moten and launched a Steam franchise sale alongside a free week for Fallout 76.
The report comes as Bethesda remains focused on supporting Fallout 76, which has surpassed 23 million players, while continuing development of The Elder Scrolls VI. Fallout 3 remaster rumors continue to circulate, but Bethesda has not officially announced a Fallout 3 remaster or a Fallout: New Vegas remake. Although leaked court documents from 2021 mentioned a Fallout 3 remaster, insiders have said neither project appears close to release.
For now, the biggest takeaway is that Bloomberg reports Obsidian’s return to Fallout is underway, with Josh Sawyer reportedly back in a leading role. However, until Microsoft, Bethesda, or Obsidian makes an official announcement, the new Fallout project should be treated as a report rather than confirmed fact.
Source
- COLLIDER – Fallout: New Vegas released in 2010, developed by Obsidian Entertainment and directed by Josh Sawyer; Fallout 76 (2018) has over 23 million players.
- Evrim Agaci – Fallout Season 2 ends February 3, 2026 Bethesda Softworks released a new trailer on February 2.
- Games Radar+ – Microsoft acquired ZeniMax Media for $7.5 billion, adding Bethesda Softworks to Xbox. Microsoft acquired Obsidian Entertainment and inXile Entertainment in 2018.
- Noob Feed – Chris Avellone said a Fallout: New Vegas remaster would be technically difficult and questioned Bethesda’s ability to make one. Avellone claimed Obsidian did not provide the complete New Vegas source code due to a reported $10,000 bonus dispute.
- Games Rant – The report comes from Bloomberg and is attributed to Jason Schreier. Around 25% of Obsidian Entertainment’s workforce was reportedly affected by layoffs.
