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  1. Games
  2. RPGs
  3. Fallout

Bethesda is taking control of Obsidian to work on a new Fallout game amid Xbox Game Studios reshuffle

News
By Anna Koselke
Published 22 September 2026

No news on what it is just yet, though

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Fallout: New Vegas screenshot showing a a man with short brown hair wielding a massive flame thrower, setting three enemies in the distance ablaze with the weapons
(Image credit: Obsidian Entertainment)
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Bethesda Game Studios is now managing Obsidian Entertainment – news that comes just two months after the studios unveiled their mysterious, collaborative new Fallout game.

Xbox Game Studios has managed Obsidian for over seven years now, following the acquisition of the legendary RPG developer in November 2018. The team delivered Grounded and its early access sequel, Pentiment, Avowed, and The Outer Worlds 2 during this time.

While the change in leadership is certainly big news, it does make a degree of sense. Bethesda is of course the the studio behind Fallout and The Elder Scrolls, franchises that Obsidian and its leadership are strongly aligned with. This news is especially intriguing right now, seeing as we know there are various projects in the works currently that are relevant to both teams.

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There's the new Fallout game that Bethesda confirmed it was working on alongside Obsidian back in July – but it's not clear which Fallout game this is. In the same breath, Bethesda also had said Fallout 5 is in pre-production and unveiled both Fallout 3 and Fallout: New Vegas remasters as well.

So, could it be Fallout 5 the two are collaborating on? I'd wager it's more likely to be the Fallout: New Vegas revamp, seeing as Obsidian headed the original back in 2010, or potentially something else entirely.

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It's exciting news nonetheless, especially when the industry is otherwise suffering quite a difficult time. After all, Microsoft's plans to cut 3,200 employees at Xbox hit both Bethesda and Obsidian, with the latter reportedly seeing around 25% of its studio impacted.

Following 1,600 layoffs taking place earlier this year, another 268 layoffs (of that total 3,200) were announced today, as was news that Rare, World's Edge, and the Halo franchise will be moving under operational control of Activision Blizzard.

I'll be keeping my own fingers crossed for what's to come from the dynamic duo now that they're working more closely together than before, that's for certain. Who knows – perhaps we'll see something entirely new come from the two rather than just a remaster. Only time will tell for sure.

Searching for more new games to keep on your radar? Browse through our roundup of all the upcoming Bethesda games to look forward to.

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TOPICS
Bethesda Game Studios Bethesda Softworks Obsidian Entertainment
CATEGORIES
PC Gaming Xbox Series X PS5 Nintendo Switch 2 Platforms Xbox PlayStation Nintendo
Anna Koselke
Anna Koselke
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Staff Writer

After spending years with her head in various fantastical realms' clouds, Anna studied English Literature and then Medieval History at the University of Edinburgh, going on to specialize in narrative design and video game journalism as a writer. She has written for various publications since her postgraduate studies, including Dexerto, Fanbyte, GameSpot, IGN, PCGamesN, and more. When she's not frantically trying to form words into coherent sentences, she's probably daydreaming about becoming a fairy druid and befriending every animal or she's spending a thousand (more) hours traversing the Underdark in Baldur's Gate 3. If you spot her away from her PC, you'll always find Anna with a fantasy book, a handheld video game console of some sort, and a Tamagotchi or two on hand.

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