The Studio Behind New Vegas Is Reportedly Making A New Fallout, And It Cost Avowed A Sequel

The Studio Behind New Vegas Is Reportedly Making A New Fallout, And It Cost Avowed A Sequel

Obsidian is reportedly making a new Fallout with New Vegas director Josh Sawyer in charge, and getting there cost the studio its planned Avowed sequel.

By NateBest - Jul 08, 2026 10:07 PM EST
Filed Under: PC
Source: Bloomberg

If you've spent the last 16 years hoping Obsidian Entertainment would get another shot at the wasteland, this is your week!

According to a new report from Bloomberg's Jason Schreier, the studio behind Fallout: New Vegas is working on a brand new Fallout game, and New Vegas director Josh Sawyer is reportedly heading it up.

fallout vegas artwork

That news comes at a price. According to the report, Obsidian has cancelled multiple unannounced projects to clear the way, including a sequel to last year's Avowed, the studio's RPG set in its Pillars of Eternity universe. According to PC Gamer, development on that sequel was reportedly moving along smoothly, and Obsidian had been planning to announce it in 2027. It just didn't fit Xbox's new focus on its biggest franchises.

Bethesda is reportedly involved as well. Windows Central reports that Bethesda Game Studios will be working with Obsidian on the project in some capacity.

Beyond that, details are scarce: no setting, no title, and no release window. A new Fallout at Obsidian has NOT been officially confirmed, and none of the companies involved have announced anything.

This report also landed right in the middle of Xbox's reset week. On Monday, Bloomberg reported that Microsoft is cutting around 3,200 jobs across its gaming division and divesting five studios in a sweeping overhaul. I broke down everything that has been confirmed by Xbox so far earlier this week. Obsidian didn't escape the cuts either, with Schreier reporting that the studio laid off roughly a quarter of its workforce.

The New Vegas Legacy

So why is this such a big deal? Fallout: New Vegas launched back in October of 2010, with Obsidian developing the game under license for Bethesda. It gave us the Mojave, Mr. House, and a faction system that fans still argue about to this day, and in the 16 years since it has grown into one of the most beloved RPGs ever made. Obsidian was founded by veterans of Black Isle Studios, the team behind the original Fallout games. So it's a natural fit.

There's a simple corporate reason this can finally happen. Microsoft bought Obsidian in 2018, and it completed its purchase of Bethesda's parent company ZeniMax in 2021. That put the studio that made New Vegas and the company that owns Fallout under the same roof for the first time, and if the report is accurate, Microsoft is ready to cash in on that.

For anyone who likes a little gaming history with their news, here's a fun tidbit: New Vegas sits at the center of one of the most infamous bonus stories in the industry. Obsidian's payout from Bethesda was tied to the game's Metacritic score, and as Game Developer reported at the time, the studio needed an 85 to collect. The game scored an 84. Obsidian missed the bonus by ONE point!

Sawyer's reported role is the part that should have longtime fans excited. He directed New Vegas, and he has spent the years since directing Pillars of Eternity and Pentiment for the studio. So much of what people love about New Vegas, from its faction politics to its reactive storytelling, took shape under his direction. Putting him at the head of a new Fallout suggests this is meant to be a true flagship RPG, and not some quick spin-off.

A Big Week For Fallout

Walton Goggins The Ghoul from Fallout

The franchise is riding high on television as well. Amazon's Fallout series picked up nine Emmy nominations this week, and as PC Gamer points out, somehow not a single one of them went to Walton Goggins! Between the show's momentum and Microsoft's stated plan to double down on its biggest names, pointing Obsidian back at the wasteland makes a lot of business sense.

What should Obsidian bring back from New Vegas? And where should a Sawyer-led Fallout be set? Let us know in the comments below!

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NateBest
Member Since 1/26/2004
Nate is the mastermind behind what is GameFragger.com, including designing and developing the entire site from scratch. The site started out as a fun project to cover some of the games that he plays and likes, but has grown to be much more than that.

His other love, comics, has found a presence on the web as well in www.ComicBookMovie.com.

When not on the computer, Nate enjoys working out, playing games, reading and spending time with his family.
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