The makers of New Vegas are working on a new Fallout game

Obsidian Entertainment is reportedly developing a new Fallout game following a shift in priorities by Xbox. This move comes as the studio scrapped plans for Avowed 2 amidst a broader restructuring strategy at Microsoft. These changes follow significant redundancies at Xbox, which included 3200 job cuts. Obsidian Entertainment specifically experienced a loss of approximately one quarter of its staff, leading to the reallocation of resources toward the new Fallout project instead of the Avowed sequel.