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Home Entertainment

The Wasteland Calls Again: Obsidian Entertainment Reportedly Working on New Fallout Title

Story Center by Story Center
July 10, 2026
Reading Time: 4 mins read
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For years, Fallout fans have clung to a single, burning hope: that Obsidian Entertainment, the studio behind the franchise’s most critically acclaimed entry would one day return to the wasteland. According to a new report from Bloomberg, that day may finally be coming.

While Bethesda Game Studios continues its long-awaited work on The Elder Scrolls 6, still years from completion, a new Fallout title is reportedly in early development at Obsidian Entertainment, with New Vegas director Josh Sawyer at the helm. The project is said to be in its nascent stages and subject to change, but the news has already sent shockwaves through the gaming community.

Bethesda may have introduced Fallout to mainstream audiences with Fallout 3 and Fallout 4, but for many devoted fans, the series reached its creative zenith with 2010’s Fallout: New Vegas: a spin-off developed by Obsidian that leaned heavily into the franchise’s computer RPG roots.

New Vegas distinguished itself through choice-driven gameplay and a dialogue-heavy narrative that rewarded players for niche character builds with unique dialogue options and mission solutions. Rather than funneling players through a few major story routes, the game offered countless permutations based on player decisions, skills, and allegiances.

Despite the critical acclaim and a devoted fanbase that has only grown over time, Obsidian never received another opportunity to develop a Fallout title. According to those who worked on the game, Bethesda was reportedly dissatisfied with New Vegas’s hardcore nature and its profitability compared to mainline franchise entries. Still, every mention of the franchise is met with fan outcry for more games in the New Vegas tradition.

The timing of this reported development makes strategic sense on multiple fronts. The Fallout franchise remains a massive commercial powerhouse with millions of copies sold, yet it has been over a decade since the release of Fallout 4. Meanwhile, Amazon’s wildly popular Prime Video adaptation has introduced the post-apocalyptic world to a new generation of casual audiences who are currently left with few options beyond playing a notoriously buggy game that’s now more than 15 years old.

With Obsidian on the job, Xbox can meet this surging demand far more quickly than waiting for Bethesda to complete The Elder Scrolls 6 and pivot to Fallout 5.

The reported Fallout project emerges from a period of significant upheaval at Obsidian Entertainment. According to Bloomberg’s report, the studio had previously been working on a sequel to its RPG Avowed, but that project has now been cancelled amid Xbox’s broader restructuring and strategic pivot toward its biggest franchises. These changes have also been accompanied by layoffs affecting approximately a quarter of Obsidian’s workforce.

The new Fallout game will reportedly absorb the bulk of the studio’s resources, though a segment of the team will continue developing content for The Outer Worlds 2 and Grounded 2.

As of now, the new Fallout game has no official release window, and it remains unclear whether Obsidian is developing a spin-off, effectively a ‘New Vegas 2’, or a mainline entry in the series. What is certain, however, is that for millions of fans who have spent over a decade hoping for Obsidian’s return to the wasteland, the wait may finally be nearing its end.


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