Obsidian is reportedly developing a new Fallout game after canceling several unannounced projects.
This is part of a broader Xbox restructuring that reportedly impacted 60 to 70 Obsidian employees.
According to Bloomberg, a small team will continue work on a planned Avowed sequel in hopes of reviving the project. Others will focus on DLC for The Outer Worlds 2 and content for Grounded 2.
The main strategy is said to be for Obsidian to develop a new Fallout game led by studio design director Josh Sawyer.
Bethesda is expected to collaborate with Obsidian on the project. An Xbox spokesperson declined to comment on this strategy.
Obsidian previously developed Fallout: New Vegas, also directed by Sawyer. The game served as the setting for the second season of Prime Video’s adaptation of the franchise.
The series quickly became Prime Video’s sixth-most watched of all time, and Fallout game sales increased significantly after its premiere last December.
Obsidian is among several studios affected by the Xbox restructuring announced earlier this week.
Id Software confirmed 136 layoffs, while 22 employees at Bethesda Game Studios in Austin were also affected.
Reportedly, up to half of ZeniMax Online Studios’ development team may be impacted. Staff reductions also occurred at Activision, Blizzard, King, Mojang, and Xbox Game Studios.
Five internal studios were divested. Compulsion Games and Double Fine will become independent studios. Ninja Theory and Undead Labs will enter new ownership terms, and Arkane has started consultation proceedings.
“Since 2018, we have aggressively expanded our studio portfolio while the number of games created each month across the industry now outpaces the last ten years combined,” said Xbox CEO Asha Sharma.
“We now find ourselves competing not only with the largest publishers, but also with independent studios. It is neither possible nor desirable to own every great independent studio. We have also learned that we are not the best home for every type of studio.
“As we reset Xbox, we will help independent creators succeed by providing open development tools and audiences to realise their vision.”
