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Obsidian’s radioactive development may be farther away than many think

Olivia Bennett by Olivia Bennett
September 22, 2026
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Obsidian’s radioactive development may be farther away than many think
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new fallout game Obsidian Entertainment Although it’s still in the early stages of development, it’s not as early as one might think after the recent shakeup within Xbox. The studio has actually been tasked with revisiting the famous post-apocalyptic series, but before that happens, Josh Sawyer’s team is working on another project that’s reminiscent of Fallout in concept and structure. This has sparked speculation that some of the existing developments could theoretically be useful for future games.

Obsidian’s plans became known in the summer of 2026 amid a major reorganization of the Xbox division. According to Jason Schreier, the studio laid off about a quarter of its staff and abandoned several projects, including a sequel to Avowed. At the same time, the team is tasked with developing a new game in the Fallout universe, the development of which is supposed to be led by Josh Sawyer, one of the most famous Obsidian veterans and directors Fallout: New Vegas.

after Bethesda Officially confirmed to be working with Obsidian. The company has announced that it will once again be working with the developers of New Vegas on a new Fallout game. However, no details about the title, plot, scale, or expected release date have been revealed.

This is where an interesting detail emerges. Even before moving on to Fallout, Sawyer was overseeing the development of a new RPG that, according to Schreier, was similar in structure and theme to Fallout but was originally created as a standalone intellectual property. The project received the unofficial name “Michigan”. The bottom line is that it was never intended to be a new Fallout game, nor was it a prototype for future games in the series.

However, some elements of such projects may be useful in new developments. If the team has created certain game systems, world concepts, mechanical prototypes, or other materials, some of them could theoretically fit into the Fallout universe. This makes it possible to not have to start the entire production process from scratch.

However, there is no confirmation that Obsidian is actually using Michigan materials. Additionally, it’s unclear what status a canceled project was in when it was shut down, and what parts of its development would typically be suitable for transfer to another game. Adaptable to requirements even with the right technology or mechanism fall out May require serious rework.

Still, the situation itself looks pretty remarkable. Rather than developing a completely new concept, Obsidian was given the opportunity to return to a franchise with which the studio already had first-hand experience. Fallout: New Vegas was released in 2010 and is the only main series game in recent years not made by Bethesda Game Studiosand another studio. Now, the developer will once again be working with Bethesda on Fallout.

That said, Obsidian’s new game will be just one part of Bethesda’s larger plans for the franchise. The company also confirmed the development of the remake Fallout 3 and Fallout: New Vegasthe specific release date has not yet been announced. Apart from, fallout 5 It’s already in pre-production, but Bethesda still sees it as a long-term project. The studio’s main focus right now is The Elder Scrolls 6.

Therefore, Obsidian’s new Fallout may appear earlier than Fallout 5, although Bethesda and Xbox have not yet revealed an official date. Even if some content from Michigan does get reused, that doesn’t mean the game is anywhere near complete. Full-fledged Fallout development requires working closely with Bethesda and adapting the project to the requirements of the existing series.

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