XBOX Reportedly Making Fallout a Top Priority with Multiple Games in the Works

New reports claim Obsidian is developing a brand-new Fallout game while Bethesda doubles down on the franchise after Microsoft's major restructuring.

News by Tahmid Mahi on  Jul 09, 2026

For years, you've probably wondered where the Fallout series was headed. Bethesda shifted much of its attention toward Starfield, Fallout 76 continued receiving updates, and Fallout 5 always seemed like it was still years away. Now, a wave of new reports suggests the future of the franchise may finally be taking shape. 

One of the biggest reports comes from Bloomberg’s Jason Schreier, who claims that XBOX dramatically changed the direction of Obsidian Entertainment after Microsoft’s recent restructure. According to the report, The Outer Worlds 2 has reportedly been canceled, even though development was progressing well. 

Fallout: New Vegas Man Holding a Gun

XBOX is instead said to be shifting the studio toward something much bigger: a brand-new Fallout game. If the report is accurate, it would mark one of the biggest changes to XBOX 's first-party strategy in years.

What makes the rumor even more exciting is the team reportedly leading the project. 

Schreier claims Josh Sawyer would be heading development, bringing one of Fallout's most respected creators back to the franchise. Sawyer directed Fallout: New Vegas, which remains one of the most beloved RPGs ever made. Whether this new project becomes Fallout: New Vegas 2, an entirely new adventure, or another spin-off remains unknown.

The project remains in its early stages, and Schreier said plans could still change as development continues. Even so, hearing Josh Sawyer's name connected with Fallout again has generated plenty of excitement among longtime fans. For years, rumors about Obsidian returning to the series have surfaced before eventually fading away.

Reports suggest Microsoft's restructuring has pushed the publisher to concentrate resources around its biggest franchises rather than spreading teams across numerous projects. Fallout now reportedly sits alongside The Elder Scrolls, Doom, Wolfenstein, and Quake as one of the company's highest priorities. 

The second major story centers around the long-rumored Fallout 3 remake. The project has circulated through industry rumors for years after first appearing in Microsoft's FTC court documents and later showing up in retailer listings. Veteran journalist Jeff Gerstmann has now claimed he has personally seen footage from the remake. 

While that doesn't guarantee the remake will eventually launch, it does suggest the project was far more than simple speculation. It also lines up with previous comments from other insiders, including Jez Corden, who has repeatedly suggested that Fallout 3 Remastered may be further along than many people realize. 

Fallout: New Vegas Man Standing outside of Vegas

Considering the overall context, the reported strategy seems reasonable. 

The Fallout television series introduced millions of brand-new fans to the franchise and dramatically increased interest in the series. Rather than making those players wait another five or six years for Fallout 5, XBOX could potentially bridge that gap with a Fallout 3 remake while continuing support for Fallout 76. 

If that happens, Fallout could move away from releasing one major game every decade. Instead, you could see multiple projects arriving much closer together, giving fans far more reasons to stay invested in the franchise. That's something many players have wanted for years. One of Bethesda's most significant criticisms has always been the lengthy gap between its biggest RPG releases.

Skyrim launched in 2011, Fallout 4 followed in 2015, and Starfield didn't arrive until 2023. Meanwhile, The Elder Scrolls 6 is still several years away, meaning Fallout 5 remains even further into the future. Fans have repeatedly made it clear they don't want another 15-year wait between major Fallout entries. 

The most compelling part is that these projects likely wouldn't all feel the same. Bethesda has traditionally focused on massive open worlds, environmental storytelling, and rewarding exploration. Meanwhile, Obsidian has built its brand on player choice, branching dialogue, deep RPG mechanics, and meaningful consequences. 

Of course, there are still plenty of unanswered questions. Nobody knows whether Obsidian's project is actually Fallout: New Vegas 2, whether the Fallout 3 remake remains in active development, or exactly when Fallout 5 will enter full production after The Elder Scrolls 6. Those details remain uncertain until Microsoft or Bethesda makes official announcements. 

For the first time in a long while, Fallout no longer feels like a franchise standing still. 

Instead, it feels like a franchise that is finally moving forward again. XBOX seems to understand that Fallout has become much more than another RPG series. Between the success of the television adaptation, millions of new players discovering the universe, and Bethesda's renewed focus on its biggest franchises, Fallout has become one of Microsoft's most valuable gaming properties.

Fallout: New Vegas Man standing beside New Vegas Sign

If these reports prove accurate, the next few years could become the franchise's biggest period of growth since Fallout 3 and Fallout: New Vegas transformed the series. Rumors also continue to suggest that Fallout: New Vegas itself could eventually receive a modern remaster after Fallout 3. 

Nothing officially confirms those plans yet, but they no longer seem as unlikely as they once did. The conversation has shifted from wondering when Fallout will return to discussing how many Fallout projects could arrive over the next several years. That alone represents a major change for a franchise that has spent much of the last decade waiting for its next chapter.

The timing also appears ideal. Bethesda knows expectations changed after Starfield, while the Fallout television series introduced millions of newcomers who never experienced classics like Fallout 3 or Fallout: New Vegas. At the same time, longtime fans have spent more than a decade waiting for another massive single-player adventure. 

Perhaps the biggest takeaway from these reports is the apparent shift in strategy. 

Instead of relying solely on Bethesda, XBOX reportedly wants multiple teams contributing to the Fallout universe. Bethesda would continue preparing for Fallout 5 after The Elder Scrolls 6, Obsidian would reportedly develop a brand-new Fallout game, Fallout 76 would continue receiving updates, and the Fallout 3 remake could eventually fill the gap. 

Obsidian has also grown considerably since releasing Fallout: New Vegas back in 2010. Since then, the studio has delivered games like Pentiment, Grounded, Avowed, and The Outer Worlds while expanding its development teams. Bethesda has continued improving its technology and world-building tools during the same period. 

None of these reports officially confirm Fallout: New Vegas 2, but the frequent emergence of that possibility is hard to ignore. Whether it's a new Fallout adventure, a long-awaited remake, or multiple projects arriving closer together, the series finally appears to have real momentum again after years of uncertainty.

Tahmid Mahi

Editor, NoobFeed

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