Microsoft's ongoing restructuring at Xbox appears to have claimed another casualty, though this time the fallout may work in players' favor. Reporting from Bloomberg indicates that Obsidian Entertainment has scrapped its in-development sequel to Avowed, redirecting the studio's resources toward an entirely new Fallout title. The project is said to be helmed by Josh Sawyer, the veteran designer who previously directed Fallout: New Vegas, a game many fans still consider one of the franchise's high points.
Josh Sawyer Returns to the Fallout Universe
Sawyer's history with the Fallout franchise runs deep. He led development on Fallout: New Vegas, an entry that continues to be celebrated by a large portion of the fanbase for its writing and design. According to Bloomberg's reporting, Sawyer had been developing an original role-playing game that shared thematic and structural DNA with Fallout, but that project has reportedly been shelved in favor of an officially branded Fallout game. The shift is being framed as part of a larger strategic pivot happening across Xbox.
Bethesda Joins the Development Effort
Bloomberg's report also notes that Bethesda Game Studios is expected to work alongside Obsidian on this new entry. That detail carries weight because Bethesda has been tied up with other releases since putting out Fallout 76 back in 2018, meaning the mainline Fallout series has gone without a fresh installment for a considerable stretch. In the meantime, Fallout 76 has kept receiving support and has expanded to a player base exceeding 23 million. Adding to the franchise's cultural momentum, Amazon's Fallout television adaptation is currently in production on its third season.
Why Avowed's Sequel Got Cut
The decision to greenlight a new Fallout game reportedly came directly at the cost of Avowed's future. Sources cited by Bloomberg say Obsidian had a sequel to Avowed in active development, with progress reportedly strong enough that an official announcement was being planned for sometime within the coming year. Despite that momentum, the project didn't fit with the direction Xbox CEO Asha Sharma is reportedly steering the company, which centers on doubling down on Microsoft's most established and highest-value franchises.
What This Means for Fallout Fans
For players disappointed by Avowed's sequel being shelved, the tradeoff comes with a significant silver lining. Should Bloomberg's reporting hold up, this would represent the first occasion since Fallout: New Vegas that Josh Sawyer has taken on an official role within the Fallout series. Given how enduring New Vegas's popularity has remained over the years, that reunion between director and franchise is likely to be the headline takeaway from this latest round of changes inside Xbox.