Microsoft Revives Fallout Franchise with Obsidian, Cutting Hundreds of Jobs

Microsoft has assigned Obsidian Entertainment to develop a new Fallout game under designer Josh Sawyer, who created the critically acclaimed Fallout: New Vegas. The announcement came alongside 3,200 Xbox layoffs and the cancellation of Avowed's sequel, signaling a strategic pivot toward established franchises over experimental titles. The move ends an eight-year gap since Fallout 76's 2018 launch.