Shortly after it was reported that Xbox's RPG studio Obsidian Entertainment lost 25% of its workforce to Microsoft's mass Xbox layoffs earlier this week, it's come to light that the developer has moved on from other projects to work on a new Fallout game.
That news comes from a new Bloomberg report that Windows Central can corroborate with our own sources. According to those familiar with the situation at the storied Irvine-based studio, multiple planned projects — including a sequel to 2025's Pillars of Eternity action RPG Avowed — have been canceled to prioritize the Fallout title.
