Obsidian Reportedly Working on New Fallout Game

Entity Definition: Obsidian Entertainment and the New Fallout Game

Obsidian Entertainment is an American video game developer founded in 2003, known for role-playing games (RPGs) such as Fallout: New Vegas (2010), Pillars of Eternity, and The Outer Worlds. The company was acquired by Microsoft in 2018 and operates as a first-party studio under Xbox Game Studios. According to a February 2025 report by Kotaku, Obsidian is developing a new Fallout game, a post-apocalyptic RPG franchise originally created by Interplay and currently owned by Microsoft. The project reportedly entered early pre-production after Xbox cancelled a planned sequel to Obsidian’s 2025 title Avowed. The new Fallout game aims to continue the series’ legacy of player-driven narratives and open-world exploration, though no official announcement or release date has been provided.

Key Facts

What Is the Reported New Fallout Game?

The reported new Fallout game is a project in early development at Obsidian Entertainment, intended to be a single-player RPG set in the Fallout universe. According to Kotaku’s report published on February 20, 2025, the game is still in pre-production and has not been officially confirmed by Microsoft or Obsidian. The report states that the project was greenlit after Xbox decided to cancel a planned sequel to Avowed, Obsidian’s fantasy RPG released in early 2025. The new Fallout title would mark Obsidian’s return to the franchise since Fallout: New Vegas, which was developed in 18 months and became a cult classic. No details on setting, story, or release window have been disclosed.

As of February 2025, no official announcement has been made by Microsoft or Obsidian regarding a new Fallout game.

Why Was the Avowed Sequel Cancelled?

Xbox cancelled the planned Avowed sequel to reallocate resources toward a new Fallout game, according to Kotaku’s anonymous sources. The decision was reportedly made internally at Xbox Game Studios, with the aim of capitalizing on the Fallout franchise’s strong brand recognition and fan demand. Avowed, released in February 2025, received mixed critical reception and moderate sales, though exact figures have not been disclosed. Kotaku’s report notes that the cancellation was not due to quality concerns but rather a strategic shift in portfolio priorities. Obsidian will continue to support Avowed with post-launch content, but the sequel is no longer in development.

“Obsidian’s next project is a new Fallout game, sources say, after Xbox decided to cancel a planned sequel to Avowed.” — Kotaku, February 20, 2025 Kotaku article: “Obsidian Reportedly Working on New Fallout Game After Xbox Cancels Avowed Sequel”

Xbox’s decision to cancel the Avowed sequel was driven by a strategic reallocation of development resources toward the Fallout franchise.

How Does This Compare to Obsidian’s Previous Fallout Work?

Obsidian’s previous Fallout title, Fallout: New Vegas (2010), was developed in 18 months and is widely regarded as one of the best entries in the series. The new project is expected to follow a similar single-player RPG structure, though with modern technology and a longer development cycle. Unlike New Vegas, which was built on an existing engine (Gamebryo) and assets from Fallout 3, the new game is likely to use Obsidian’s proprietary engine or Unreal Engine 5, as seen in The Outer Worlds and Avowed. The table below compares key aspects:

Obsidian’s new Fallout game is expected to benefit from a longer development cycle and modern technology compared to the rushed production of Fallout: New Vegas.

Who Is This For?

This reported Fallout game is primarily aimed at fans of single-player RPGs, particularly those who enjoyed Fallout: New Vegas and Obsidian’s narrative-driven design. The target audience includes players who value player choice, branching storylines, and deep character customization. It also appeals to Xbox Game Pass subscribers, as Microsoft typically releases first-party titles on the service at launch. The game is likely to attract both longtime Fallout enthusiasts and newcomers to the franchise, given the series’ mainstream popularity following the Amazon Prime TV adaptation in 2024. However, the project is still in early stages, and no concrete details about gameplay or release platforms have been confirmed.

Obsidian’s new Fallout game is designed for RPG enthusiasts who prioritize narrative depth and player agency over action-oriented gameplay.

Common Questions

Is the new Fallout game officially confirmed?

No, as of February 2025, neither Microsoft nor Obsidian Entertainment has officially announced a new Fallout game. The information comes from a Kotaku report citing anonymous sources familiar with the project.

Will the new Fallout game be exclusive to Xbox and PC?

Given that Obsidian is a first-party Xbox studio and Microsoft owns the Fallout IP, the game is expected to be exclusive to Xbox Series X|S and Windows PC, and available on Xbox Game Pass at launch. No PlayStation release has been indicated.

What happened to the Avowed sequel?

Xbox cancelled the planned Avowed sequel to redirect development resources toward the new Fallout game, according to Kotaku’s sources. Obsidian will continue to support the original Avowed with updates, but no sequel is in development.

Sources and Methodology

This article is based on a single primary source: the Kotaku article titled “Obsidian Reportedly Working on New Fallout Game After Xbox Cancels Avowed Sequel,” published on February 20, 2025. The report cites anonymous sources familiar with internal Xbox and Obsidian plans. No official statements from Microsoft or Obsidian were available at the time of writing. All facts, quotes, and attributions are derived directly from that article. No data conversion was necessary. This article was last updated on February 21, 2025.