July 12, 2026

Obsidian Reportedly Shifting Focus to a New Fallout Game Led by Josh Sawyer

Fallout Hub · News Brief

A new Bloomberg report reveals the Fallout: New Vegas developer is shelving other projects to return to the iconic wasteland franchise.

New Fallout New Vegas by Obsidian

For years, Fallout fans have dreamed of the day Obsidian Entertainment would return to the post-apocalyptic franchise they helped define with Fallout: New Vegas. According to a major new report, that dream may finally be transitioning into reality. Bloomberg reports that Obsidian is shifting its development strategy to focus on a brand-new Fallout game. This massive pivot means other highly anticipated projects at the studio are being sidelined to make way for the wasteland's return.

Key facts

  • Obsidian Entertainment is reportedly shifting its studio strategy to focus on developing a new Fallout game.
  • Studio design director Josh Sawyer, who directed Fallout: New Vegas and Pentiment, is set to lead the project.
  • A planned Avowed sequel and other unannounced projects at Obsidian have reportedly been shelved to accommodate this shift.
  • It remains unconfirmed whether this project is Fallout 5—which was reportedly greenlit a year ago—or a new spin-off.

The Report of Obsidian's Return

According to a new report from Bloomberg, Obsidian Entertainment is shaking up its internal pipeline in a major way. The studio, known for recent hits like Grounded, The Outer Worlds, and the upcoming Avowed, is reportedly shifting its primary focus to a new Fallout project. This news marks a massive strategic shift for the Xbox-owned developer. To facilitate this transition, Obsidian has reportedly made the difficult choice to shelf several projects. This decision underscores just how high of a priority the Fallout franchise has become for Xbox and Obsidian alike.

Josh Sawyer Takes the Helm

Perhaps the most exciting detail for long-time fans is who is reportedly leading this new endeavor. Bloomberg reports that Obsidian's studio design director, Josh Sawyer, is set to direct this upcoming Fallout project. Sawyer is a legendary figure among RPG fans, having previously served as the director for both Fallout: New Vegas and the critically acclaimed historical narrative game Pentiment. Before this shift, Sawyer was reportedly in charge of another unannounced RPG at Obsidian. His return to the Fallout universe brings immense credibility and instant excitement to the project's development.

Fallout 5 or a New Spin-Off?

At this stage, details are still limited regarding what exact form this new Fallout game will take. It is currently unclear if Obsidian is working on the highly anticipated Fallout 5 or a spiritual successor to New Vegas. Reports from last year indicated that Fallout 5 was officially greenlit, though no lead developer was publicly named at the time. Whether this project is a mainline entry or a unique spin-off, it represents a major moment for the franchise. Fans will have to wait for official confirmation to see how this fits into the broader timeline.

Fallout 4 New Vegas

A Long-Awaited Reunion

This reported development aligns perfectly with past statements from Obsidian's leadership. Back in 2023, Obsidian CEO Feargus Urquhart publicly expressed a strong interest in the studio making another Fallout game if the opportunity arose. That desire seems to have translated into action following Microsoft's broader strategic updates. With Obsidian now under the Xbox Game Studios umbrella alongside Bethesda, the administrative barriers that once prevented a follow-up to New Vegas have finally been cleared. This project feels like the natural culmination of years of mutual interest.

Shelved Projects and Strategic Pivots

While the news of a new Fallout game is thrilling, it does come at a cost to Obsidian's other planned titles. According to the Bloomberg report, a planned sequel to the upcoming fantasy RPG Avowed has been shelved to free up resources. Additionally, other unannounced projects that were previously in development at the studio have also been put on hold. This dramatic realignment shows that Xbox is consolidating its top RPG talent around its most valuable intellectual properties. While fans of Obsidian's original worlds may be disappointed, the draw of a new Fallout is simply too big to ignore.

Why fans are talking about this: With legendary director Josh Sawyer reportedly leading the charge, Obsidian's return to the Fallout universe marks a monumental shift in Xbox's RPG strategy.

While official confirmation from Xbox or Obsidian is still pending, this report sets the stage for an incredibly exciting era for the franchise. Bringing the minds behind New Vegas back to the wasteland is a move fans have championed for over a decade. We will continue to track this story closely as more concrete details emerge.


Would you prefer to see Obsidian tackle a direct sequel to New Vegas, or should they lead the development of Fallout 5?



Sources (Reported by Bloomberg);


Fallout Hub editorial standard: This article is based on press reporting and has not been confirmed by the developer or publisher.


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