Obsidian is reportedly working on a new Fallout game. The development of this game appears to be linked to the cancellation of a sequel to Avowed, a project that Obsidian was previously working on, possibly due to Xbox layoffs. The details of the new Fallout game and the circumstances surrounding the cancellation of Avowed 2 are not entirely clear, with some reports mentioning potential involvement of specific individuals and past conflicts with other game developers.