At Obsidian Entertainment, a significant shift is underway. Xbox has realigned the studio’s focus, discontinuing several projects while bringing a well-known RPG universe back into the spotlight.
According to Bloomberg journalist Jason Schreier, Microsoft’s Xbox division is shifting Obsidian’s efforts toward a new game within the “Fallout” franchise. Concurrently, the studio has canceled multiple projects, including the anticipated sequel to the role-playing game “Avowed,” set to be released in 2025.
This fundamental restructuring has had a profound impact on the Irvine, California-based studio. Alongside the project cancellations, about a quarter of the staff has been laid off. These insights have emerged from various sources familiar with the transitions who spoke under anonymity. Xbox representatives have declined to comment on the matter, according to Schreier.
Josh Sawyer Takes the Helm for New Fallout
Design Director Josh Sawyer is reportedly taking creative lead on the new “Fallout.” While the exact setting within the universe remains uncertain, it is clear that this will be part of the well-known series, which is set in an alternate timeline following a nuclear war in the USA. Bloomberg emphasizes that the strategy is not yet finalized and is subject to change.
This isn’t Sawyer’s first venture into the Fallout world; he previously directed a role-playing game that bore structural and thematic similarities to Fallout but was not part of the series. This independent project has now been sidelined in favor of the official Fallout title.
Obsidian’s history with the “Fallout” franchise isn’t new. The studio developed “Fallout: New Vegas”, released in 2010 under Bethesda’s publishing arm, which continues to be a fan favorite. Bethesda remains involved in the new game, maintaining control over the franchise and collaborating closely with Obsidian.
A “Reset” at Xbox
This realignment occurs during a larger restructuring phase at Xbox. Chief Executive Asha Sharma has mentioned a “reset” of the organization. On Monday, she announced the elimination of 3,200 positions and the divestiture of five studios. Concurrently, there are plans to invest more heavily in major franchises, including “Fallout,” which has sold millions and serves as a basis for a successful Amazon series currently filming its third season.
Despite the franchise’s success, no new mainline entry has been released since “Fallout 76” launched in 2018. The primary developers at Bethesda Game Studios were engaged in other projects but continued to provide updates and content for the online title.
Sources indicate that the canceled “Avowed” sequel was in good shape and could have been announced within the coming year. Obsidian hoped to build on existing worlds and technologies to expedite the sequel’s development. Ultimately, however, this endeavor didn’t fit into Sharma’s broader strategy.
Of the three games released by Obsidian last year, two fell short of sales expectations, including “Avowed.” Some staff members continue to work on the sequel while they await new assignments, like “Fallout,” possibly hoping to revive the game at some point.
Despite these cuts, two titles remain in active development. Obsidian is still working on downloadable content for “The Outer Worlds 2”, which was released last year, and development for the multiplayer survival game “Grounded 2” is also ongoing.
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