Microsoft Hands Fallout Video Game to Obsidian Studio; Cuts 3,200 Jobs

Microsoft has told game studio Obsidian to build a new Fallout video game, led by designer Josh Sawyer, who made the fan-favorite Fallout: New Vegas. The announcement came with 3,200 job cuts across Xbox and the cancellation of another game sequel. The shift shows Microsoft betting on beloved franchises over newer, riskier projects.