Fallout: New Vegas's creators are making Fallout again after 16 years — but one thing is getting in the way of celebrating

Fans had been asking for this since 2010 — and it's finally happening. Bethesda has officially confirmed that Obsidian Entertainment, the studio behind the cult classic Fallout: New Vegas, is returning to the post-apocalyptic universe. It's a new spin-off being made in collaboration with Bethesda; details haven't been shared yet, with more promised later. Todd Howard announced this as part of a major reveal where the studio also unveiled several new projects set in the franchise.

The game director didn't hold back on the praise. "We couldn't be happier to work with Obsidian again," he said, adding that "the time is right" for it now. According to him, there's enormous mutual respect between the two studios, and their workflows are similar enough that collaborating won't be difficult. Howard did stress, though, that control of the franchise stays with Bethesda — the staff and core teams are based there.

Now for the part that puts a damper on the celebration. Obsidian didn't take on Fallout because the stars aligned — it's because there wasn't much choice left. In early July, Microsoft launched another wave of layoffs: 1,600 people were let go starting on the sixth, with another 1,600 expected to lose their jobs in the new fiscal year. Obsidian was hit especially hard — the studio lost roughly a quarter of its staff, and the sequel to its own Avowed was cancelled. The pivot to Fallout is a consequence of that fallout, not a long-awaited dream that finally got greenlit.

Bethesda itself didn't escape unscathed either. Howard called the layoffs "genuinely difficult" and explained that the company is "going through changes to better focus on its franchises." Employees, however, see the situation in a bleaker light: some teams are organizing a march in support of developers, and people working on The Elder Scrolls VI worry that thinned-out ranks will mean delays and crunch. As a reminder, that game remains the studio's top priority.

Observers have already pointed out an uncomfortable contrast: a barrage of high-profile announcements — a new Fallout from Obsidian, Fallout 5, remasters, a major expansion for Fallout 76, and fresh content for Starfield in 2027 — landed right after mass layoffs, without a single frame of gameplay shown. The foreign press and union circles are reading it the same way: it looks like an attempt to steer the conversation away from the cuts and reassure the public with promises. This despite the fact that after the strange Elder Scrolls VI announcement, Howard swore the studio wouldn't do such early reveals again.

As for Howard himself, he's not going anywhere. He's been at Bethesda since 1994 — 32 years now — and when asked about retirement, he answered plainly: "There was a period when I thought about what that would look like. Not that it's coming soon, just what it looks like. I don't think about it anymore." His current projects, he says, are what keep him motivated: "I just love this work. I love working with these people."

Are you happy Obsidian is coming back to Fallout — or do the circumstances behind it ruin the moment? Tell us in the comments what you're hoping for from the new spin-off.