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Fallout: New Vegas boss reportedly helming new Fallout game, as another Obsidian project is cancelled

Have you been waiting for this news?

A suit of Power Armour on display at the Xbox Games Showcase 2026.

Xbox / Radio Times

Published: Thursday, 9 July 2026 at 9:59 am

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Fallout fans have been predicting this for years, and now it finally seems to be happening — a report from a reputable source has claimed that Xbox is putting Obsidian Entertainment to work on a new Fallout game, with the director of Fallout: New Vegas helming the project.

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Certainly, Xbox could do with some positive news right now. It was only last week that we had to report the news that 3,200 layoffs are coming to Microsoft's Xbox business, with a number of studios being sent packing to new ownership as part of the restructuring work.

Not long before that, new Xbox CEO Asha Sharma celebrated her first 100 days with a huge Xbox Games Showcase, with a new Spyro game being announced alongside new looks at Gears of War: E-Day, Fable and Halo Campaign Evolved. She promised every fan in attendance a limited edition Xbox console, as well as throwing a big party for industry people, and saved all the sad news until after the Summer Game Fest conference had ended.

We already knew that Xbox's restructuring was focused, at least in part, on reprioritising their biggest and most famous franchises. And with Fallout being the focus of a smash-hit Amazon Prime TV series with its third season on the way, it does make a huge amount of sense to treat that franchise as a top priority for an all-new game.

Given that Bethesda, the main custodians of the Fallout brand, are pretty busy working on The Elder Scrolls 6, it makes perfect sense to get Obsidian working on a Fallout game as a matter of urgency — both companies are now owned by Xbox, after all, and Obsidian did a great job with their previous spin-off entry Fallout: New Vegas (it was one of the major inspirations for the second season of the Fallout show).

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As we mentioned up top, fans have been wondering for years why Obsidian wasn't working on a Fallout game, with the company instead prioritising their own original ideas like The Outer Worlds, Grounded and Avowed. And now, according to this fresh report, it sounds like Xbox has finally actioned this painfully obvious idea.

The report comes from Jason Schreier of Bloomberg, one of the most trusted journalists in the industry, although the sources that he cites were not willing to be named on the record.

Schreier explicit states that Obsidian "will begin working on a new game in the popular Fallout franchise as part of the division’s broader restructuring".

Josh Sawyer, the director of Fallout: New Vegas, is said to be leading this new Fallout game, which is described as "a new title in the Fallout universe", as opposed to a remake of a previous game.

This means that Avowed 2, which was in early development at Obsidian, is being wound down for the time being, although there is a chance it could be picked up again later. In fact, some employees are still working on Avowed 2 while they wait for the Fallout project to come to life.

The report also mentions that, prior to this decision to prioritise Fallout, "Sawyer had been directing a roleplaying game that was similar structurally and thematically to Fallout but was not part of the franchise."

Certainly, Obsidian has kept its hand in the RPG genre over the years, with Avowed and The Outer Worlds both allowing players to design their own character and head of on an epic adventure filled with memorable companions, a wide open world to explore and lots of side content to get distracted by.

With that in mind, it sounds like Obsidian are the perfect company to put on a Fallout game, so it's nice to see a round peg going into a round hole for once. As we hear more about this project, we'll be sure to let you know. It's probably multiple years away, but you can colour us excited for this one.

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Authors

Black and white cut-out portrait headshot of Rob Leane, smiling against a lime green background.

Rob LeaneGaming Editor

Rob Leane is the Gaming Editor at Radio Times, overseeing our coverage of the biggest games on PlayStation, Xbox, Switch, PC, mobile and VR. Rob works across our website, social media accounts and video channels, as well as producing our weekly gaming newsletter. He has previously worked at Den of Geek, Stealth Optional and Dennis Publishing.

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