New Fallout Game From Obsidian Gets Official Update

In a recent blog post from Xbox, fans received an update on the future of the franchise as a whole as part of the ongoing reset that is taking place. In an email that was sent to all Xbox employees globally, the reset will be taking place across the rest of 2026, and whilst this comes alongside news of more mass layoffs, the silver lining is that Bethesda is still working alongside Obsidian Entertainment to work on a brand-new Fallout entry.

“First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer,” the post reads. “The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them.

“Second, we are reorganizing our studios. The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.”

As part of this, “Bethesda will expand its remit to include Obsidian”, meaning that current projects will be continued. This includes Grounded, as well as a “new Fallout project made in collaboration with Bethesda Game Studios.”

More to come…