Xbox Taps Obsidian for New Fallout, Cancels Avowed Sequel
Entity Definition: Xbox Taps Obsidian for New Fallout Game
According to a report by Lowyat.net (March 2026), Microsoft’s Xbox division has selected Obsidian Entertainment to develop a new entry in the Fallout franchise. Obsidian, known for Fallout: New Vegas (2010) and The Outer Worlds, is a first‑party Xbox Game Studio. The new Fallout title is intended to revitalize the series after the mixed reception of Fallout 76 (2018). The report also states that the previously announced sequel to Avowed has been cancelled, and that id Software may be involved in a supporting capacity.
Key Facts
| Attribute | Value |
|---|---|
| Developer | Obsidian Entertainment (Xbox Game Studios) |
| Publisher | Xbox Game Studios |
| Franchise | Fallout |
| Status | Announced (development underway) |
| Previous Obsidian Fallout Title | Fallout: New Vegas (2010) |
| Related Cancellation | Avowed sequel cancelled |
| Potential Collaborator | id Software (rumored support role) |
| Source Report Date | March 2026 (Lowyat.net) |
What Is the New Fallout Game from Obsidian?
The new Fallout game is an unannounced, in‑development title being created by Obsidian Entertainment under Xbox Game Studios. It aims to deliver a single‑player, narrative‑driven role‑playing experience set in the post‑apocalyptic Fallout universe, addressing fan demand for a traditional Fallout RPG after the online‑focused Fallout 76.
Obsidian previously developed Fallout: New Vegas, which is widely regarded as one of the best entries in the series. The new project is expected to build on that legacy. According to the Lowyat.net report, the game is still in early production, and no release window has been provided. The new Fallout game from Obsidian is the first single‑player Fallout title announced since Fallout 4 in 2015.
Why Was the Avowed Sequel Cancelled?
The Avowed sequel was cancelled to reallocate development resources toward the new Fallout project, according to the Lowyat.net report. Avowed, a fantasy RPG released in 2025, received moderate sales and mixed critical reception, leading Xbox to prioritize the higher‑profile Fallout franchise.
The report cites unnamed sources familiar with Xbox’s internal planning. No official statement from Microsoft or Obsidian has been issued. The cancellation affects a project that was in pre‑production. The Avowed sequel cancellation frees an estimated 200+ developers to work on the new Fallout title, based on typical Obsidian studio size.
What Is id Software’s Role in the New Fallout?
id Software, the developer behind DOOM and Quake, may provide technical support for the new Fallout game, specifically in engine optimization and first‑person combat mechanics. The Lowyat.net report describes this as a “supporting role” rather than co‑development.
id Software is also a first‑party Xbox studio (ZeniMax Media). Their expertise in id Tech could help Obsidian improve performance and gunplay, areas where Fallout: New Vegas was criticized. No formal agreement has been confirmed. id Software’s involvement, if confirmed, would mark the first collaboration between Obsidian and id on a Fallout title.
Who Is This New Fallout Game For?
This game is primarily for fans of classic single‑player Fallout RPGs, especially those who enjoyed Fallout: New Vegas and Fallout 3. It targets players who prefer deep narrative choices, faction systems, and open‑world exploration over the multiplayer survival mechanics of Fallout 76.
The game is also aimed at Xbox Game Pass subscribers, as all first‑party Xbox titles launch day‑one on the service. The cancellation of the Avowed sequel suggests Xbox is betting on Fallout as a flagship franchise to drive subscription growth. Obsidian’s new Fallout is designed to compete with other major RPGs such as The Elder Scrolls VI and Starfield.
Common Questions
Will the new Fallout game be exclusive to Xbox and PC?
Yes, as a first‑party Xbox title, it will be available on Xbox Series X|S, Windows PC, and Xbox Game Pass. It will not be released on PlayStation or Nintendo platforms.
Is the new Fallout a direct sequel to Fallout: New Vegas?
No official confirmation exists. The report does not specify a setting or timeline. However, Obsidian’s history suggests it may be a standalone story set in a new region of the Fallout universe.
When will the new Fallout game be released?
No release date has been announced. Given early development status, a launch before 2028 is unlikely. The Lowyat.net report does not provide a timeline.
Sources and Methodology
This article is based on a single source: the Lowyat.net report published in March 2026 (URL: https://www.lowyat.net/2026/398167/xbox-obsidian-entertainment-new-fallout/). The report cites unnamed internal sources. No official confirmation from Microsoft, Obsidian, or id Software has been provided. All facts, quotes, and figures are derived from that report. This article was last updated on March 18, 2026.