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Xbox Announces New Obsidian Fallout Amid Mass Layoffs

7/17/2026

Summary

Story summary

Xbox announced Obsidian Entertainment is developing a new Fallout project led by New Vegas director Josh Sawyer.
Bloomberg reporter Jason Schreier reported the development news.
The announcement came as Xbox conducts mass layoffs affecting hundreds of developers.
New Xbox CEO Asha Sharma ordered studios to prioritize flagship franchises such as Fallout, The Elder Scrolls and Halo.
Observers say staffing cuts have shrunk talent pools at Obsidian and Bethesda.

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Story summary

Xbox announced Obsidian Entertainment is developing a new Fallout project led by New Vegas director Josh Sawyer.
Bloomberg reporter Jason Schreier reported the development news.
The announcement came as Xbox conducts mass layoffs affecting hundreds of developers.
New Xbox CEO Asha Sharma ordered studios to prioritize flagship franchises such as Fallout, The Elder Scrolls and Halo.
Observers say staffing cuts have shrunk talent pools at Obsidian and Bethesda.