{"id":918349,"date":"2026-07-08T17:12:43","date_gmt":"2026-07-08T22:12:43","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/07\/08\/new-fallout-reportedly-coming-from-new-vegas-studio-amid-mass-layoffs-game-cancellations\/"},"modified":"2026-07-08T17:12:43","modified_gmt":"2026-07-08T22:12:43","slug":"new-fallout-reportedly-coming-from-new-vegas-studio-amid-mass-layoffs-game-cancellations","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/07\/08\/new-fallout-reportedly-coming-from-new-vegas-studio-amid-mass-layoffs-game-cancellations\/","title":{"rendered":"New Fallout Reportedly Coming From New Vegas Studio Amid Mass Layoffs &#038; Game Cancellations"},"content":{"rendered":"<p>Entertainment <\/p>\n<div>\n<p>News surrounding Xbox\u2019s <a href=\"https:\/\/comicbook.com\/gaming\/list\/every-major-game-potentially-at-risk-from-upcoming-xbox-layoffs-reset-plan\/\">long-rumored<\/a> <a href=\"https:\/\/comicbook.com\/gaming\/news\/xbox-games-studios-double-fine-compulsion-ninja-theory-double-fine-layoffs\/\">layoff spree<\/a> is continuing to spill out as the bodies stack up and the dust settles. Obsidian Entertainment is one such team Xbox has taken the hatchet to as the console maker continues to flail. A new report has gone into some of these less public dealings, sifting through some of the chaos and revealing how the studio is allegedly developing a new Fallout game.<\/p>\n<div>\n<h2>Entertainment<br \/>\n\t\t\tVideos by ComicBook.com\t\t<\/h2>\n<\/div>\n<p>Bloomberg\u2019s <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-07-08\/microsoft-s-xbox-to-shift-obsidian-studio-to-new-fallout-video-game\">report<\/a> noted how around 25% of the studio had been let go, something GameFile elaborated on by <a href=\"https:\/\/www.gamefile.news\/p\/xbox-cuts-texas-california\">saying<\/a> it was 52 people in total. These unfortunate developers are part of the thousands of people Xbox has cut loose, a decision that was met with CEO Asha Sharma <a href=\"https:\/\/news.xbox.com\/en-us\/2026\/07\/06\/resetting-xbox\/\">stating<\/a> how the next decade will be \u201cmore creative than anything we\u2019ve seen before\u201d and that the publisher will \u201cinvest as much\u201d in Xbox as it ever has.<\/p>\n<p>The games Obsidian was making and will make are allegedly being shaken up, too. The aforementioned Bloomberg report revealed that Obsidian will begin developing another Fallout game. Details were scant, but Josh Sawyer will lead the title. Sawyer, who also has a <a href=\"https:\/\/www.youtube.com\/@jesawyer1975\">decent following on YouTube<\/a>, has been in the gaming industry for decades and has been praised for his work on <em>Fallout: New Vegas<\/em>, <em>Pentiment<\/em>, <em>Grounded<\/em>, <em>The Outer Worlds<\/em>, and <em>Pillars of Eternity<\/em>, just to name a few. He has held various roles including but not limited to writer, game director, design director, and narrative director. However, Bloomberg\u2019s sources explained how the \u201cemerging strategy is still in flux,\u201d so this could all still change down the line.<\/p>\n<h2 id=\"h-obsidian-entertainment-is-perhaps-most-known-for-fallout-new-vegas\">Obsidian Entertainment Is Perhaps Most Known for <em>Fallout: New Vegas<\/em><\/h2>\n<figure><img fetchpriority=\"high\" decoding=\"async\" height=\"640\" width=\"1024\" src=\"https:\/\/comicbook.com\/wp-content\/uploads\/sites\/4\/2026\/07\/new-vegas.jpg?w=1024\" alt  ><figcaption>Image Courtesy of Bethesda Softworks<\/figcaption><\/figure>\n<p>Obsidian has been renowned for its work in the RPG genre, developing games like <em>South Park: The Stick of Truth<\/em>, <em>Star Wars Knights of the Old Republic 2: The Sith Lords<\/em>, <em>Alpha Protocol<\/em>, and <em>Avowed<\/em>, in addition to the aforementioned titles on Sawyer\u2019s resume. However, <em>Fallout: New Vegas<\/em> is one of its most beloved titles. While it had a notoriously rough launch in 2010, it has since been more revered, as its improved technical state has given players more space to appreciate its quest design and writing. Such qualities are why many hold it up as the best Fallout game.<\/p>\n<p>The setting for this alleged new Fallout title hasn\u2019t been confirmed, though, so it\u2019s unclear if Obsidian will return to New Vegas almost two decades later. New Vegas was, at least, explored in the second season of the popular <em>Fallout<\/em> television series on Prime Video. This shift is also undoubtedly part of Sharma\u2019s commitment to bigger franchises, which would clearly include Fallout.<\/p>\n<p>However, this pivot to Fallout has come with more cuts. Bloomberg reported Xbox canceled some unannounced games Obsidian was working on, including a sequel the 2025 fantasy RPG <em>Avowed<\/em>. Xbox previously <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-02-03\/xbox-studio-behind-grounded-outer-worlds-is-charting-new-path\">said<\/a> <em>Avowed<\/em>, along with fellow Obsidian game <em>The Outer Worlds 2<\/em>, didn\u2019t meet sales expectations. This new report stated Obsidian was hoping to use <em>Avowed<\/em>\u2018s template to make a sequel in a shorter amount of time, which would also have saved money.<\/p>\n<p>Progress on this follow-up was reportedly going well, and it was slated to be officially revealed within the next year, but, since another <em>Avowed<\/em> isn\u2019t congruent with Sharma\u2019s directive, it was put on hold. Some are reportedly still chipping away at this likely ill-fated title as they wait for other projects to take shape \u201cperhaps in hope of one day reviving the game.\u201d<\/p>\n<p>Obsidian has been one of the few developers that has actually managed to release multiple games (often completely original ones, too) after being purchased by Xbox in late 2018. Since the acquisition, the team has put out two Outer Worlds games (although the first was technically still published by Private Division), two Grounded titles, <em>Pentiment<\/em>, and <em>Avowed<\/em>. While the reception is on a scale, all of these games were received well, with the average scores ranging from 78 to 86. With such a prolific output of respected games, it seems odd to cut the studio down and have it shift gears, especially after the aforementioned Sharma quote speaking to Xbox\u2019s commitment to investment and creativity.<\/p>\n<hr>\n<p>What do you think? Leave a comment below and join the conversation now in the\u00a0<a href=\"https:\/\/forum.comicbook.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">ComicBook Forum<\/a>!<\/p>\n<figure><\/figure>\n<\/div>\n<p><a href=\"https:\/\/comicbook.com\/gaming\/news\/new-fallout-reportedly-coming-from-new-vegas-studio-amid-mass-layoffs-game-cancellations\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Michael Leri<\/p>\n","protected":false},"excerpt":{"rendered":"<p>News surrounding Xbox\u2019s long-rumored layoff spree is continuing to spill out as the bodies stack up and the dust settles. Obsidian Entertainment is one such team Xbox has taken the hatchet to as the console maker continues to flail. A new report has gone into some of these less public dealings, sifting through some of<\/p>\n","protected":false},"author":1,"featured_media":918350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1798,23292,52],"tags":[18780,5286],"class_list":["post-918349","post","type-post","status-publish","format-standard","has-post-thumbnail","category-entertainment","category-fallout","category-reportedly","tag-fallout","tag-reportedly"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/918349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=918349"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/918349\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/918350"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=918349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=918349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=918349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}