Obsidian reportedly developing new Fallout RPG

Obsidian Entertainment is reportedly working on a new Fallout game, according to an unverified Bloomberg report dated July 8, 2026. The project is allegedly being led by Josh Sawyer, who directed the 2010 spinoff Fallout: New Vegas. Plans remain in early stages and are subject to change.

Bethesda shifts focus to Elder Scrolls 6. Bethesda Game Studios is concentrating on The Elder Scrolls 6, a project still years from completion. Fans had not anticipated a new Fallout title in the near term as a result.

The report indicates that Obsidian's new assignment follows the cancellation of its Avowed sequel. Xbox has pivoted resources toward bigger franchises, prompting the change.

New Vegas remains a fan favorite. Fallout: New Vegas earned critical acclaim for its choice-driven gameplay, dialog-heavy story, and support for niche character builds. Some fans view it as the franchise high point compared with mainline entries from Bethesda Game Studios.

Obsidian never received another opportunity to develop a Fallout game after New Vegas. People who worked on the title said Bethesda was unhappy with its hardcore elements and profit performance relative to the core series.

Studio reorganization follows layoffs. The shift to the new Fallout project occurs after layoffs that affected around a quarter of Obsidian's workforce. A portion of the remaining team will continue developing content for The Outer Worlds 2 and Grounded 2.

Fallout franchise sees renewed interest. The series has sold millions of copies and more than a decade has passed since the 2015 release of Fallout 4. Amazon's popular Prime Video adaptation has drawn casual audiences seeking gameplay that aligns with the show, many of whom encounter the buggy 15-year-old New Vegas as their primary option.

Xbox can address that demand more quickly by assigning the project to Obsidian. The new Fallout game currently carries no official release window. Polygon has contacted Xbox for comment. Multiple sources indicate the project does not exist.