Details on Obsidian and Bethesda's new Fallout project are still under wraps.
Obsidian Entertainment is moving into Bethesda's expanded remit as Xbox reshapes how its first-party studios are organised, putting the two RPG developers under a closer structure while their new Fallout project moves ahead.
Xbox Executive Vice President and Chief Content Officer Matt Booty announced the change in an Xbox Wire post on Tuesday (22 September), as part of another round of changes under the company's ongoing reset. The move is part of Xbox's broader effort to reorganise its studios. "The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise," Booty said.
What is changing for Bethesda and Obsidian under Xbox's reset?
Bethesda will now expand its remit to include Obsidian, bringing the studio into the same broader group while allowing its current projects to continue. "Bethesda will expand its remit to include Obsidian," Booty said.
Xbox did not go into detail about how Obsidian's management or day-to-day operations will work under the new structure. The announcement instead focuses on consolidating studios into fewer business units and placing teams that already work closely together within the same groups. For Obsidian, Booty said the studio "will continue its current projects," including Grounded and the new Fallout project made in collaboration with Bethesda Game Studios.
The Fallout project is particularly notable because the two studios were already being pushed closer together before this latest reorganisation.
What do we know about Obsidian and Bethesda's new Fallout project?
Obsidian's new Fallout project first emerged during Xbox's previous round of restructuring in July. At the time, Obsidian was reportedly shifting more of its resources towards Fallout after layoffs affected around a quarter of the studio. A planned Avowed sequel and several other projects had reportedly been shelved, while Fallout: New Vegas director Josh Sawyer was said to be leading the new Fallout project.
Bethesda officially confirmed the collaboration later that month as part of a wider update on the future of the franchise. The project has not been given a title, and Bethesda has not said whether it will be a full game, expansion, or another type of Fallout release. It has, however, consistently been presented separately from the other Fallout games already in development.
Obsidian previously developed Fallout: New Vegas for Bethesda, which was released in 2010. The new project will bring the studios back together on Fallout development, this time with Obsidian sitting within Bethesda's expanded remit under Xbox.
What Fallout games are currently in development?
The Obsidian collaboration is only one part of a much larger Fallout slate. Bethesda confirmed in July that Fallout 5 had entered pre-production, although The Elder Scrolls VI continues to be Bethesda Game Studios' primary development focus.
Remasters of Fallout 3 and Fallout: New Vegas were also confirmed, while the Obsidian collaboration was announced separately as another new Fallout project. Fallout 76 is continuing alongside those games, with its Raven Rock expansion planned for 2027.
Xbox has not said that Obsidian is involved with Fallout 5 or either remaster, nor has it indicated that the latest restructuring changes which teams are working on those projects. The biggest unanswered question is still what Obsidian and Bethesda Game Studios are actually making together.
