New rumors have emerged about the future of Obsidian.

As reported by Jason Schreier for Bloomberg, Obsidian is being assigned to make a new Fallout game, to be led by Josh Sawyer. The studio has also cancelled plans to make a sequel to Avowed.
This is part of XBOX’s big reset, but also falls in line with how Obsidian has done in recent years. While they have down well with live service title Grounded, Avowed and The Outer Worlds 2, both ambitious and expensive action RPGs, underperformed when they both released last year.
We already know that the studio is also hard at work at Grounded 2. While Obsidian’s layoffs and narrowed portfolio is regrettable, the studio also needs to regroup to become a successful game studio again.
It was fortuitous for XBOX that they happened to also own the Fallout franchise, thanks to their purchase of Bethesda. Plans are apparently still in flux and could change, but ideally XBOX could get Obsidian and Bethesda to work together to get a new Fallout out in time to capitalize on their Amazon show.
