Microsoft Announces New Fallout Game, With Reports of Past Bethesda-Obsidian Tensions

Microsoft is moving forward with a new Fallout game, as an ex-writer claims Bethesda previously blocked Obsidian from making one.

A new Fallout game is in development under Microsoft's oversight, with involvement linked to the director behind the fan-favorite 2010 entry Fallout: New Vegas. The announcement marks a notable shift in how the franchise may be managed under Microsoft, which acquired both Bethesda and Obsidian's parent company ZeniMax as part of its broader gaming acquisitions. Adding context to the announcement, former Obsidian writer Chris Avellone has claimed that Bethesda previously blocked Obsidian from developing a Fallout title. Obsidian Entertainment, the studio behind New Vegas, had reportedly sought to return to the franchise at some point after that game's 2010 release, but Avellone alleges the effort was shut down by Bethesda, which has held the primary development rights to the series. With Microsoft now owning both studios, the corporate barrier that Avellone describes would no longer exist in the same form. The new project appears to reflect that changed ownership landscape, though specific details about the game's scope, timeline, and platforms have not been confirmed by the sources.

Why it matters

Fallout is one of gaming's most commercially significant RPG franchises, and a new entry — particularly one involving New Vegas talent — would be a major release for Microsoft's game portfolio. The backstory of alleged inter-studio blocking also raises questions about how creative decisions were made under previous ownership structures.

What's next

Further details about the new Fallout project's timeline, platforms, and development studio are expected to emerge as Microsoft makes additional announcements.

Key facts

• A new Fallout game is reportedly in development with involvement from the director of Fallout: New Vegas (2010)
• Former Obsidian writer Chris Avellone claims Bethesda previously blocked Obsidian from making a Fallout game
• Microsoft owns both Bethesda and Obsidian following its acquisition of ZeniMax Media
• Fallout: New Vegas was developed by Obsidian and released in 2010
• No release date, platforms, or formal title for the new project have been confirmed in these reports

Bias & framing notes

CBR framed the news enthusiastically as the franchise 'finally moving forward,' implying long-awaited progress and casting the development in a positive light. Vice took a more investigative angle, foregrounding Avellone's allegations about Bethesda blocking Obsidian — a claim that remains unverified and comes from a single named source. Neither outlet provided official confirmation from Microsoft, Bethesda, or Obsidian, leaving the core facts largely based on claims and reports rather than announced details.