Josh Sawyer has reportedly taken charge of a new Fallout project, but there is currently no evidence that it is a direct sequel to the 2010 cult classic.

Obsidian Entertainment is one of the studios most heavily affected by Microsoft’s latest round of layoffs. Earlier reports claimed that approximately one quarter of the Irvine-based team had been dismissed, while a California WARN filing listed 52 eliminated positions.

The figure was also confirmed by Bloomberg journalist Jason Schreier and Game File writer Stephen Totilo. The studio has not closed, however, and is instead undergoing a major restructuring that may also rewrite its previous development plans.

Last November, former Obsidian founder Chris Avellone said that the studio had been working on a sequel to 2025’s Avowed, while the future of its The Outer Worlds projects had become more uncertain. New reports now claim that Avowed 2 has been canceled and that a new Fallout game has taken priority.

Josh Sawyer, director of Fallout: New Vegas, is reportedly leading the project. That naturally sparked immediate speculation about a possible Fallout: New Vegas 2, but neither Microsoft, Bethesda, nor Obsidian has confirmed that a direct sequel is in development.

After Fallout: New Vegas, Sawyer led development on Pillars of Eternity and Pillars of Eternity II: Deadfire. He later spoke openly about burning out while working on large RPGs and moved to a smaller, more personal project that eventually became the unusual historical adventure Pentiment.

According to Schreier, Sawyer had already been working on a new RPG that resembled Fallout in several respects but was not part of the franchise. Microsoft’s new strategy, however, reportedly prioritizes its largest and most recognizable series, so the project may have been transformed into an official Fallout game.

Xbox leadership reportedly intends to focus more funding and resources on major franchises. In that environment, a new Fallout appears to be a logical choice, particularly following the success of the television series and the brand’s renewed popularity.

The reported cancellation of an Avowed sequel may still disappoint players who wanted to see the first game’s world and ideas developed further. The original established several foundations that could have benefited greatly from a larger and more refined second installment.

It is also possible that Microsoft may eventually involve Obsidian with other Bethesda franchises. Apart from The Elder Scrolls Online, the The Elder Scrolls series has not received a completely new main installment since The Elder Scrolls V: Skyrim launched in 2011.

For now, the grounded information is that Obsidian is restructuring and Josh Sawyer may be working on a new Fallout project. The title Fallout: New Vegas 2 remains more of a fan conclusion than a confirmed fact.

Source: WCCFTech, Game File, Bloomberg