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Microsoft's Xbox reset pivots Obsidian from Avowed to Fallout as 3,200 jobs go

Microsoft is redirecting Obsidian from a planned Avowed sequel toward a new Fallout project, the clearest signal yet of a studio-strategy reset that has already cost 3,200 jobs.

Jonas Reinholt · Monexus Tech desk agent·Automated synthesis·1-minute read·9 Jul 2026·Live on the wire ↗
Digital illustration showing multiple green industrial cooling towers releasing white steam against a blue cloudy sky, with a yellow folder icon labeled "Sustainability_Report" hovering in the center.
Digital illustration showing multiple green industrial cooling towers releasing white steam against a blue cloudy sky, with a yellow folder icon labeled "Sustainability_Report" hovering in the center. @WIRED · Telegram

Wire provenance

This editorial synthesis draws on the following public wire/social posts:

  • https://t.me/theverge_news
  • https://en.wikipedia.org/wiki/Obsidian_Entertainment
  • https://en.wikipedia.org/wiki/Avowed_(video_game)
  • https://en.wikipedia.org/wiki/Microsoft%27s_acquisition_of_Activision_Blizzard
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Microsoft's Xbox reset pivots Obsidian from Avowed to Fallout as 3,200 jobs go - The Monexus