New Fallout Game From Obsidian Gets Official Update

Published Sep 22, 2026, 10:18 AM EDT Known as 'Cyberpunk 2077's' biggest fan, Angharad is a Welsh games writer who thrives in anything related to digital storytelling. If a video game explores the intricacies and horrors of womanhood, she is there. Thanks to previous work at GAMINGbible, GameByte, The Loadout, Game Luster, Angharad has built a strong understanding of both the digital world and what fans want from it and is eager to share her thoughts and expertise with readers. Sign in to your ScreenRant account In a recent blog post from Xbox, fans received an update on the future of the franchise as a whole as part of the ongoing reset that is taking place. In an email that was sent to all Xbox employees globally, the reset will be taking place across the rest of 2026, and whilst this comes alongside news of more mass layoffs, the silver lining is that Bethesda is still working alongside Obsidian Entertainment to work on a brand-new Fallout entry. "First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer," the post reads. "The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them. "Second, we are reorganizing our 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." As part of this, "Bethesda will expand its remit to include Obsidian", meaning that current projects will be continued. This includes Grounded, as well as a "new Fallout project made in collaboration with Bethesda Game Studios." This was the only official update we have received about the upcoming and untitled Fallout entry, but we do know that it is the second Fallout project currently in development alongside Fallout 5. However, with the latter only being officially confirmed earlier this year, and set to launch after The Elder Scrolls VI, it is anybody's guess when we will get the next Fallout entry. Will Fallout 5 launch before this untitled entry, or after? With Bethesda Game Studios now managing Obsidian Entertainment, these answers are currently unclear. We do know that the brand-new Fallout game was first announced back in July, with the news revealed alongside a Fallout 5 update and even the unveiling of Fallout 3 and Fallout: New Vegas remasters. Now with Bethesda taking Obsidian onboard, does this mean that the two studios will work together in Fallout 5 or one of the new remasters? Or will they be prioritizing this new, standalone release? With big changes being made for Xbox in the upcoming months, there are bound to be further announcements and updates. For now, however, confirmation that these projects are still in development is good enough. Unfortunately, it is hard to celebrate with more layoffs in progress.