# Microsoft's Xbox shift moves Obsidian from Avowed to Fallout development

Microsoft is reportedly pivoting its Xbox strategy, directing Obsidian Entertainment to work on a new Fallout game instead of its planned RPG Avowed. This marks a major shift for the studio, which previously developed Fallout: New Vegas. The move signals Microsoft’s focus on leveraging Bethesda’s flagship franchise to strengthen Xbox’s exclusive lineup.

**Importance:** 4/5

## Sources

### Technology
- [The Verge](https://www.theverge.com/games/963024/microsoft-xbox-reset-obsidian-fallout-layoffs) — 2026-07-08T14:50:27-04:00