Obsidian Entertainment is currently developing a new entry in the Fallout franchise led by Josh Sawyer, according to a report from Bloomberg’s Jason Schreier. This project follows a major restructuring at the studio, which saw the layoff of 52 employees as part of a wider reorganization within Microsoft’s Xbox division, as documented by Stephen Totilo of Game File.
Who is leading the new Fallout project?
The new Fallout title is being helmed by Josh Sawyer, who previously directed Fallout: New Vegas. Widely considered a fan favorite, New Vegas is a title developed by the studio.
Obsidian previously launched The Outer Worlds and Grounded on the Nintendo Switch.
How does the Xbox restructuring impact Obsidian’s staff?
According to official documents obtained by Stephen Totilo, the recent workforce reduction at Obsidian Entertainment totals 52 positions. This figure includes 43 employees based at the studio’s California offices and 9 remote workers. Reporting from Bloomberg previously estimated that these layoffs represented approximately one-quarter of the studio’s total staff. The restructuring has reportedly led to the cancellation of several internal projects, including a planned sequel to the fantasy RPG Avowed.

What is the status of Fallout remakes?
While Obsidian works on new content, rumors regarding remasters of classic titles continue to circulate. Windows Central has reported that remakes of Fallout 3 and Fallout: New Vegas are in development. Jez Corden, a Microsoft informant, stated that Bethesda is currently targeting a 2027 release window for the next Fallout remaster, which many believe will be a refreshed version of Fallout 3. To date, there has been no official confirmation regarding these specific release dates.
Follow verified industry journalists like Jason Schreier and Stephen Totilo for the most accurate updates on studio restructuring and project roadmaps, as they often have access to internal documents and verified reporting.
Frequently Asked Questions
Is Obsidian definitely making a new Fallout game?
According to a report by Bloomberg’s Jason Schreier, Obsidian Entertainment has shifted its focus to a new Fallout project led by Josh Sawyer.
How many people were laid off at Obsidian?
Official documents obtained by Game File’s Stephen Totilo confirm that 52 employees were affected by the recent restructuring at Obsidian Entertainment.
Are Fallout 3 and New Vegas remakes coming?
While not officially confirmed, Windows Central reports that remasters are in development, with an estimated release window of 2027 for the next title in the series.
What are your thoughts on the future of the Fallout series under Josh Sawyer’s direction? Share your perspective in the comments below or join the conversation on our social media channels.
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