---
title: "Microsoft’s Xbox reset is pivoting Obsidian to make Fallout instead of Avowed — Stuff That Spins"
description: "As part of Microsoft's big Xbox \"reset,\" which includes layoffs affecting 3,200 staffers, jettisoning studios, and shifting investments to focus on \"higher pri…"
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date: "2026-07-08T18:50:27+00:00"
modified: "2026-07-09T00:01:42.873855+00:00"
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# Microsoft’s Xbox reset is pivoting Obsidian to make Fallout instead of Avowed

**Source:** Unknown  
**Published:** July 8, 2026  
**Original:** https://www.theverge.com/games/963024/microsoft-xbox-reset-obsidian-fallout-layoffs  

## On this page

- [Overview](#overview)

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## Overview

As part of Microsoft's big Xbox "reset," which includes layoffs affecting 3,200 staffers, jettisoning studios, and shifting investments to focus on "higher priority projects," Obsidian Entertainment is changing its plans. The studio, behind games like Grounded and The Outer Worlds, is starting work on a new Fallout title and has canceled "multiple projects," including a […]

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