● Covered by 2 sources · 4 reportsMedium impact
Obsidian Focuses on New Fallout Game Amid Massive Xbox Layoffs
Key points
- Obsidian cancels Avowed sequel for new Fallout project.
- 3,200 layoffs announced in Xbox division restructuring.
- Josh Sawyer to lead new Fallout game at Obsidian.
- Bethesda confirms development of Fallout 5.
- Focus shifts to successful franchises amid layoffs.
Microsoft's Xbox Restructuring
Microsoft is undergoing a large-scale restructuring within its Xbox division, which includes laying off approximately 3,200 employees. This move is part of a broader strategy to focus investments on high-priority projects and existing successful franchises.
Obsidian's New Focus
Following this organizational shake-up, Obsidian Entertainment, known for titles like The Outer Worlds and Fallout: New Vegas, is shifting its focus to developing a new Fallout game and canceling other projects, including a sequel to Avowed. Longtime franchise contributor Josh Sawyer will lead the development of this new game.
Bethesda's Announcements
Amid these changes, Bethesda Game Studios confirmed that Fallout 5 is in development, marking a commitment to continue with its celebrated franchise. Bethesda is also working on remastering earlier Fallout titles, like Fallout 3 and New Vegas, while continuing to support Fallout 76 with updates.
Implications for Xbox Studios
The strategic changes underscore Microsoft's intent to strengthen its successful gaming franchises. By redirecting resources and talent within its studios, Microsoft aims to maintain momentum and morale after the challenging layoffs, focusing on game worlds that resonate with players.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Bethesda is developing Fallout 5 and remastering Fallout 3 and New Vegas. Obsidian is also creating a new Fallout title, while Fallout 76 continues to receive updates.
Bethesda Game Studios has confirmed that Fallout 5 is in development as Xbox undergoes significant layoffs. Xbox has announced this project to maintain morale and demonstrate ongoing investments in its gaming divisions after the workforce reduction affecting key studios.
Microsoft has reportedly cancelled the Avowed sequel, redirecting Obsidian Entertainment to develop a new Fallout game. This decision is part of a broader restructuring amid significant layoffs within Microsoft's gaming division, affecting Obsidian's workforce and focus.
Microsoft's restructuring has led Obsidian Entertainment to cancel multiple projects, including a sequel to Avowed, redirecting efforts to develop a new Fallout game. This decision comes amid significant layoffs and a focus on prioritizing key projects, including a continuation of the Fallout franchise.