Engadget • 7/17/2026 – 7/18/2026

Bethesda has announced several upcoming projects related to the Fallout franchise amidst significant layoffs at Xbox, which are part of a broader "reset" period for the company. Xbox is set to lay off approximately 3,200 employees over the next year, affecting various studios, including id Software and Obsidian Entertainment. Despite these cuts, Bethesda is moving forward with new developments, including the confirmation that Fallout 5 is in the works. In addition to Fallout 5, Obsidian Entertainment is reportedly working on a new Fallout game. Furthermore, remasters of Fallout 3 and Fallout: New Vegas are also in development. These announcements come as Bethesda Game Studios, which has also experienced layoffs, aims to reassure fans and stakeholders that it is still committed to delivering new content and experiences within the beloved Fallout universe. Bethesda's strategy includes investing more deeply in the worlds that players love and giving creators a larger role in shaping player experiences. The company is also focusing on bringing its teams closer together to expedite the delivery of games to players. This approach is intended to support the ongoing development of its franchises, even in the face of the challenges posed by the layoffs at Xbox and its associated studios.
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