Xbox’s restructure sees the studio “shift” focus
As part of Xbox’s massive reset, a new report from Bloomberg journalist Jason Schreier claims Obsidian Entertainment has now shifted its focus to a “new” Fallout title.
Obsidian, which has previously released games such as The Outer Worlds and Grounded on the Switch, has apparently cancelled multiple projects after the Xbox division’s mass restructure. One of these titles reportedly included a sequel to the fantasy role-playing game Avowed.
The same studio previously developed the fan-favourite title Fallout: New Vegas. Its new Fallout project will be led by Josh Sawyer, who also directed New Vegas.
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Bloomberg: “Under the new plan, studio design director Josh Sawyer will lead a new title in the Fallout universe — a series of roleplaying games that take place in an alternate history in which the US has been ravaged by nuclear war. The emerging strategy is still in flux, the people said, and could still change.”
According to official documents obtained by Game File reporter Stephen Totilo, Obsidian Entertainment is set to lose 52 workers as part of Xbox’s restructure. This includes 43 workers at the California offices and nine remote workers. Bloomberg previously estimated it was around a “quarter of its workforce”.
Xbox eliminated approximately 1,600 roles this week, with approximately 3,200 jobs to be cut by the end of June 2027.
Bethesda most recently released Fallout 4: Anniversary Edition on the Switch 2 in February, and a post-launch update added DLSS support. If we hear anything about more Fallout games coming to Nintendo’s latest platform, we’ll provide an update.
