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Microsoft’s Xbox reset is pivoting Obsidian to make Fallout instead of Avowed

Microsoft's ongoing Xbox restructuring and layoffs have led Obsidian Entertainment to cancel multiple projects, including an Avowed sequel, to pivot toward developing a new Fallout title. This strategic shift aims to capitalize on the franchise's renewed popularity following the success of the TV series, despite the absence of a mainline game since 2018.

Background

Microsoft has initiated a significant restructuring of its gaming division, involving widespread layoffs and a refocus on high-priority intellectual properties. The Fallout franchise has seen a resurgence in interest due to the critical and commercial success of its recent television adaptation.

Source
The Verge
Published
Jul 9, 2026 at 02:50 AM
Score
8.0 / 10