Bloomberg

Obsidian Entertainment Shifts Focus to New Fallout Game

Obsidian Entertainment, known for titles like The Outer Worlds and Avowed, is reportedly shifting its focus to develop a new Fallout game, according to Bloomberg. This move may result in the shelving of a planned Avowed sequel and other unannounced projects. The new Fallout game could be Fallout 5 or a spin-off, though details remain unclear. Josh Sawyer, who previously directed Fallout: New Vegas, is set to lead the project. Meanwhile, Xbox has announced significant layoffs at Obsidian, impacting up to 25% of the studio's workforce as part of a broader reset plan. Bethesda, the owner of the Fallout franchise, will be involved in the development of the new game.

GameSpot

Obsidian Pivots to New Fallout Game After Avowed Sequel Canceled

Obsidian Entertainment is reportedly shifting focus to a new Fallout game following the cancellation of a planned Avowed sequel, according to Bloomberg. The decision comes amid Xbox's ongoing layoffs and restructuring efforts, which have affected multiple studios under Microsoft's umbrella. The studio has reportedly laid off around a quarter of its workforce and canceled several unannounced projects. Josh Sawyer, Obsidian's studio design director, is expected to lead the new Fallout project, marking the studio's return to the franchise since Fallout: New Vegas in 2010. The move aligns with Microsoft's strategy to accelerate development on core franchises like Fallout, Halo, and Elder Scrolls. While Bethesda will remain involved in the project, the canceled Avowed sequel reportedly did not align with Xbox's current strategic priorities.

Kotaku

Microsoft's $80 Billion Xbox Game Pass Investment Fails to Meet Expectations

A new report reveals that Microsoft's $80 billion investment in Xbox Game Pass over the past decade has not yielded the expected results, contributing to recent layoffs and restructuring at the company. Xbox CEO Asha Sharma acknowledged that efforts to grow the service, including acquiring studios and expanding Game Pass, did not achieve the desired growth. Microsoft aimed for 77 million subscribers by 2026 but only reached 30 million as of June 30, according to Bloomberg. The service faced challenges, including a 50% price increase that led to millions of cancellations, and concerns that the Netflix-style subscription model does not align with gaming consumption patterns. Analysts suggest that Game Pass failed to attract the mass market and that third-party deals costing $1 billion annually did not significantly boost subscriptions.

GameSpot