NerdLeaks has learned that Microsoft-owned Obsidian Entertainment is reportedly shifting its focus back to Fallout — and that move has had immediate consequences for other projects and staff, per a new report picked up by Push Square.
What Was Reported
Per Push Square, which cites a Bloomberg story by Jason Schreier, Obsidian Entertainment has allegedly begun work on a new Fallout RPG. The project is said to be at the very start of development, and Josh Sawyer — known for his roles on Fallout: New Vegas and the Pillars of Eternity games — is reportedly serving as the lead on the new title.
The report claims there are casualties from the studio overhaul: an Avowed sequel has been cancelled, along with “other unannounced projects.” Push Square relays that the developer has lost roughly a quarter of its workforce to layoffs as part of the shake-up.
Even so, the Avowed follow-up is not presented as dead in all forms. The outlet relays that there will still be “some” Obsidian employees working on the cancelled sequel while they wait for the Fallout project to be in a state where it needs more hands. Work on the Avowed sequel was reportedly going well and, per the report, would have been revealed in the next 12 months — but it didn’t fit into Asha Sharma’s strategy.
Additionally, the reporting points to separate circulating chatter that a Fallout 3 remake is in production with a view to launching it in the next few years. Take this with a pinch of salt: the Bloomberg story is presented as a mix of confirmed moves and industry rumour.
The Source & Credibility
Where The Claims Came From
- Push Square published a piece summarising a Bloomberg report.
- Bloomberg’s coverage is attributed to reporter Jason Schreier in the summary Push Square provided.
Per Push Square, the Bloomberg story is the origin of the claims. If true, this would represent a significant internal realignment at Obsidian Entertainment — though we should emphasise the distinction between confirmed corporate announcements and reporting based on industry sources.
How To Read These Claims
We’re treating the information as rumour-level intel. The story includes direct attributions (“reportedly”, “allegedly”) and notes the new Fallout project is “at the start of development,” which implies a long road before any public reveal. The mention of layoffs and cancelled projects is stark, but per Push Square those are claims reported from Bloomberg rather than statements from Obsidian or Microsoft themselves in the piece.
What It Could Mean
If the reported shake-up is accurate, there are several immediate implications for Obsidian’s development slate and staffing.
- Priorities Shifted: The studio pivoting towards a new Fallout RPG — with Josh Sawyer allegedly leading — suggests a major internal focus change that could deprioritise in-progress original IP like the Avowed sequel.
- Talent Redistribution: The claim that roughly a quarter of the workforce was laid off and that only “some” employees will continue work on the Avowed follow-up indicates remaining staff may be stretched across fewer, higher-priority projects.
- Public Timelines Unclear: With the new Fallout project described as being at the start of development, the chances of seeing it publicly any time soon are described as “very slim.”
- Possible Remake Activity: The rumour of a Fallout 3 remake being in production and targeted to launch in the next few years, if true, suggests multiple Fallout-related initiatives may now be on Microsoft’s or Obsidian’s radar.
All of the above hinges on the accuracy of the Bloomberg reporting as relayed by Push Square. We must emphasise “if true” — several claims remain industry rumour rather than studio-confirmed fact.
Why This Matters
For players, the stakes are straightforward: a renewed Obsidian focus on Fallout could mean a studio with historical ties to the franchise is now steering new entries in that universe, if the reporting is accurate. For Obsidian staff and fans of original IP like Avowed, the alleged cancellations and layoffs are worrying signs of changing corporate priorities.
Per Push Square’s summary of Bloomberg, this is a developing story built from industry reporting. We’ll continue to watch for any confirmations from Obsidian Entertainment or Microsoft and will update readers when additional verified details emerge. Until then, take these claims with a pinch of salt — but stay excited, if you’re hoping for another Obsidian-led Fallout RPG.
