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  • Bethesda takes over Obsidian Entertainment management as the two continue work on new Fallout game

Bethesda takes over Obsidian Entertainment management as the two continue work on new Fallout game

September 22, 2026 / admin / retro news

Bethesda Game Studios is now managing Obsidian Entertainment – news that comes just two months after the two unveiled their mysterious, collaborative new Fallout game.

Xbox Game Studios, Microsoft’s gaming arm, has managed Obsidian Entertainment for over seven years now since its acquisition of the legendary RPG developer in November 2018.

The jump to Bethesda isn’t such a big one, then, but it is notable that the studio behind the likes of Fallout and Elder Scrolls is taking Obsidian on – especially seeing as we know there are various projects in the works currently that are relevant to both teams.

There’s the new Fallout game that Bethesda confirmed it was working on alongside Obsidian back in July – but it’s not clear which Fallout game this is. In the same breath, Bethesda also had said Fallout 5 is in pre-production and unveiled both Fallout 3 and Fallout: New Vegas remasters as well.

So, could it be Fallout 5 the two are collaborating on? I’d wager it’s more likely to be the Fallout: New Vegas revamp, seeing as Obsidian headed the original back in 2010, or potentially something else entirely.

It’s exciting news nonetheless, especially when the industry is otherwise suffering quite a difficult time. After all, Microsoft’s plans to cut 3,200 employees at Xbox hit both Bethesda and Obsidian, with the latter reportedly seeing around 25% of its studio impacted.

Following 1,600 layoffs taking place earlier this year, another 268 layoffs (of that total 3,200) were announced today.

I’ll be keeping my own fingers crossed for what’s to come from the dynamic duo now that they’re working more closely together than before, that’s for certain. Who knows – perhaps we’ll see something entirely new come from the two rather than just a remaster. Only time will tell for sure.

Searching for more new games to keep on your radar? Browse through our roundup of all the upcoming Bethesda games to look forward to.

2019

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