Obsidian Entertainment is not shifting to a new Fallout video game, despite recent online speculation. While Obsidian, a subsidiary of Xbox Game Studios, previously developed the critically acclaimed 2010 title Fallout: New Vegas, both Microsoft and studio leadership have confirmed their current focus remains on independent projects, specifically Avowed and The Outer Worlds franchise.
Current Development Priorities at Obsidian
Obsidian Entertainment is currently focused on the release of its upcoming first-person fantasy RPG, Avowed, which is scheduled for launch on February 18, 2025. According to official announcements from Xbox Wire, the studio is dedicating its primary resources to finalizing this title for Xbox Series X|S, PC, and Game Pass.
Beyond Avowed, the studio has publicly confirmed development on the next entry in The Outer Worlds series. In a 2023 interview with IGN, studio representatives reiterated that the team is actively working on The Outer Worlds 2. There has been no official communication from Microsoft or Obsidian regarding a return to the Fallout intellectual property.
The Fallout Franchise Under Bethesda Game Studios
The Fallout series is currently managed by Bethesda Game Studios, another subsidiary of Microsoft following the 2021 acquisition of ZeniMax Media. Bethesda Game Studios, led by Todd Howard, is the primary developer for the mainline Fallout entries.
As reported by Variety, Bethesda’s current roadmap prioritizes the long-term support of Starfield and the development of The Elder Scrolls VI. While Todd Howard has acknowledged the popularity of Fallout, the studio’s next major narrative focus remains on its existing internal pipelines. The Fallout brand has also expanded into multimedia, most notably with the Amazon Prime Video series, which Amazon MGM Studios renewed for a second season in April 2024.
Why Rumors Persist Regarding Obsidian and Fallout
Speculation regarding an Obsidian-led Fallout project often stems from the legacy of Fallout: New Vegas. Fans frequently cite the game’s deep narrative branching and faction-based systems as a benchmark for the franchise.
However, industry analysts note that Microsoft’s internal structure post-acquisition keeps development teams siloed on specific franchises. While Microsoft owns both Bethesda and Obsidian, the company has maintained a strategy of allowing studios to pursue their own creative directions rather than forcing collaborations based on historical associations.
Key Takeaways
- No Official Announcement: Neither Microsoft nor Obsidian Entertainment has announced a new Fallout game in development at the studio.
- Active Projects: Obsidian’s confirmed development slate includes Avowed (2025) and The Outer Worlds 2.
- Franchise Management: Bethesda Game Studios remains the primary custodian of the Fallout intellectual property.
- Ownership Context: Both studios operate under the Xbox Game Studios umbrella, but they function as independent development teams with distinct creative focuses.