Ever since the first Fallout video game was released back in 1997, the franchise has expanded with the release of many console and PC titles, a live-action Prime Video series, mobile apps, and tabletop games. However, no matter how many projects come our way, Fallout: New Vegas will always be regarded by many as one of the best entries in the series as a whole.
New Vegas is praised for its deep RPG mechanics, fantastic storylines, and iconic settings that feel alive despite being part of a post-apocalyptic world. Interestingly, this title was developed by Obsidian Entertainment rather than Bethesda, which has been responsible for the four mainline games. As such, fans have patiently waited for the day when Obsidian returns to one of the most influential franchises in the video game world, and that day could finally be here.
Obsidian Entertainment is reportedly working on a new Fallout game
As reported by Bloomberg, Obsidian has cancelled work on all projects in development and will dedicate all its resources to creating a new game in the Fallout franchise. This is likely the result of a larger restructuring currently taking place at Xbox, in which 1,600 layoffs have taken place, five studios have been let go by Microsoft, and the video game company is looking to go back to some of its most iconic franchises.
Obsidian has remained in the RPG world ever since releasing Fallout: New Vegas. The developer went on to create The Outer Worlds franchise, which fans have basically described as "Fallout in space." While the first The Outer Worlds title was well received both critically and commercially, its follow-up failed to meet sales expectations. Similarly, Obsidian also launched a fantasy RPG called Avowed, but it also underperformed despite positive reviews. It's clear the studio is able to craft memorable experiences; it just needs a bigger franchise to get players' attention.
Obsidian was reportedly working on a sequel to Avowed along with other unannounced projects, but they were canceled in favor of the new Fallout game. Unfortunately, a quarter of the studio's staff has also been let go as part of its internal restructuring and Microsoft's biggest plan to reduce its workforce by 3,600 employees by the start of the 2027 fiscal year.
Interestingly enough, we could now find ourselves in a situation where two different developers might work on the Fallout franchise. After all, the director and executive producer at Bethesda Game Studios, Todd Howard, has confirmed that Fallout 5 is indeed coming our way, although it will see the light of day after the release of The Elder Scrolls 6. With that in mind, both Bethesda and Obsidian might expand the franchise in unique, different ways. However, don't expect them to do so simultaneously.
Bloomberg also reported that The Elder Scrolls 6 is two or more years away from being released, despite having been officially revealed over eight years ago. However, it seems it could take even more time than that, as IGN has revealed that the Xbox layoffs have severely impacted development of Bethesda's upcoming title. Over 50 employees working on the game have been let go—a devastating move that "has shattered morale, raised the risk of future development crunch, and increased the likelihood that the game's already far-off completion date will be delayed."
Since Fallout 5 won't come until after the release of The Elder Scrolls 6 (which, in turn, looks to be very far away), the more likely scenario is that Obsidian will begin and finish development on its own title first. On the bright side, this will make the wait for a new mainline Fallout game feel shorter.
We shouldn't expect to get any news about Obsidian's Fallout game soon, especially if the studio is just starting work on it. Fortunately, the wait could prove to be worth it if New Vegas is anything to go by.
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