Sixteen years after the release of the critically acclaimed Fallout New Vegas, Obsidian Entertainment is officially returning to the franchise that cemented its reputation as one of the most talented RPG developers in the industry. Bethesda confirmed in July 2024 that a new Fallout game is in development at the California-based studio, now also under the Microsoft umbrella. Multiple media outlets, including the highly respected Bloomberg, have reported that Josh Sawyer, the director of New Vegas, will be returning to helm this new project alongside several other industry veterans. While official confirmation of the full team remains pending, one of Obsidian’s co-founders has already expressed tremendous enthusiasm about the project, calling it nothing short of “amazing.”
A Dream Team Assembles for the New Fallout Project
Chris Avellone, co-founder of Obsidian and former lead developer on iconic titles such as Fallout New Vegas, Star Wars Knights of the Old Republic II, and Pillars of Eternity, recently appeared as a guest on the Human Can Opener podcast. Avellone, who departed the studio in 2015, shared his thoughts on the franchise returning to his former colleagues’ hands. He believes this development represents excellent news for both the development team and the millions of fans who have been waiting for another Obsidian-crafted Fallout experience. However, he emphasized that the project’s success hinges on assembling the right talent, particularly in the writing department.
“If they’ve got John Gonzalez as lead writer, it’s going to be amazing,” Avellone explained during the interview. “I’ve never played a game written by John where I didn’t appreciate the story. I love his writing. I want to know the answers to the questions he poses in his narrative. Seeing him back at Obsidian is going to make this Fallout shine.” Gonzalez served as the lead narrative designer on Fallout New Vegas, crafting the intricate faction politics and memorable characters that players still discuss to this day. His return could signal a commitment to the deep, choice-driven storytelling that made New Vegas a beloved classic.
Gonzalez’s Return and Xbox’s Strategic Restructuring
John Gonzalez did indeed return to Obsidian in January 2025, following several successful years at Guerrilla Games where he contributed to the Horizon franchise, including Horizon Zero Dawn and Horizon Forbidden West. At the time of his return, Gonzalez quickly tempered fan expectations by stating on social media, “No, this is not for Fallout New Vegas 2.” However, the landscape at both Obsidian and Microsoft has shifted dramatically since that statement. The sweeping restructuring of Xbox Game Studios, which involved multiple waves of significant layoffs and the cancellation of numerous projects including the anticipated sequel to Avowed, has fundamentally changed the strategic priorities across the organization.
Bethesda and Obsidian are now confirmed to be working hand in hand, with Fallout and other major Xbox franchises becoming strategic priorities aimed at returning the gaming division to profitability. Microsoft’s gaming division has faced mounting pressure from shareholders following the massive $69 billion Activision Blizzard acquisition, and leveraging beloved franchises like Fallout has become essential to their turnaround strategy. While no official confirmation exists regarding Gonzalez’s specific involvement in the new Fallout project, the current circumstances make it highly unlikely that Xbox would sideline one of the principal architects of New Vegas’s success.
Legendary Creators and Industry Implications
Beyond the potential return of John Gonzalez, Avellone identified several other reasons for optimism regarding Obsidian’s new Fallout venture. He specifically mentioned Tim Cain and Leonard Boyarsky, the original creators of the Fallout franchise dating back to 1997 when they developed the first game at Interplay Entertainment. Both veterans are now employed at Obsidian, having worked together on The Outer Worlds, a spiritual successor to classic Fallout gameplay. “I have a hard time imagining they won’t participate in the project in some way,” Avellone noted. The potential involvement of Fallout’s actual creators adds an unprecedented layer of authenticity to this new project.
With such a remarkable assembly of industry veterans—a rarity in an era when mass layoffs have scattered experienced developers across the industry—Avellone believes this collaboration could benefit both studios significantly. “I think this will be beneficial for Obsidian, because I’m not sure its newer original IPs were really finding their audience,” he observed. “And I think it will also be good for Bethesda. The studio has always had extremely long development cycles.” This observation carries particular weight given Bethesda’s notoriously extended production timelines. The Elder Scrolls VI was announced eight years ago without a single screenshot being released, and Fallout 5 isn’t expected to arrive until sometime in the 2030s.
The Future of the Franchise and Fan Expectations
Currently, Bethesda’s own Fallout 5 remains in pre-production, and Obsidian’s project appears to be at a similarly early stage of development. Despite the lack of concrete details, Avellone expressed confidence that Obsidian could function as a “satellite studio” to accelerate the release cadence of Fallout games. This arrangement would mirror the successful model established with New Vegas in 2010, when Obsidian delivered a complete Fallout experience while Bethesda focused on other projects. The renewed interest in the franchise following the successful Amazon Prime Video adaptation, which premiered in April 2024 to critical acclaim and record viewership, has only intensified demand for new Fallout content.
No specific details have been revealed about the new game’s setting, story, or gameplay mechanics. Speculation ranges from a direct sequel to New Vegas—potentially revisiting the Mojave Wasteland and its complex political landscape—to an entirely new spin-off exploring previously unseen regions of post-apocalyptic America. Fans have long requested settings in locations like New York, Chicago, or even international locales. The original Fallout New Vegas was famously developed in just 18 months, an impressive feat that resulted in one of the most beloved RPGs ever created despite its notoriously buggy launch. Whether Obsidian can recapture that lightning in a bottle remains to be seen, but with potentially the most experienced Fallout development team ever assembled, the odds appear favorable. Only time will tell if Avellone’s optimism proves justified.
Expert Opinion: The convergence of original Fallout creators, New Vegas veterans, and Microsoft’s renewed focus on established franchises creates a unique opportunity that hasn’t existed in gaming for decades. If Obsidian successfully integrates Tim Cain, Leonard Boyarsky, Josh Sawyer, and John Gonzalez on a single project, this could represent the definitive Fallout experience—one that bridges the series’ isometric origins with modern open-world RPG design. However, managing such concentrated talent while meeting corporate expectations for timely delivery will be the true test of whether this dream team can deliver on its extraordinary potential.
