Obsidian works on new Fallout project; Bethesda mentions Fallout 5 and remasters

According to the reports, it is unclear whether the project is Fallout 5, a spin-off, or something else; Bethesda is also said to be working on remasters.
Game Rant says Fallout 5 is in pre-production and that Fallout 3 and Fallout: New Vegas are being mentioned as remasters, but no official public details have been shared.

What happened

Kotaku reported on 22 September 2026 that Obsidian Entertainment is once again working on a Fallout project. The report mentions an organizational shift within Xbox Game Studios, with Obsidian said to be placed under Bethesda Softworks, though the exact meaning of that is not further explained in the available text.

A day earlier, on 21 September 2026, Game Rant wrote that Bethesda is preparing remasters of Fallout 3 and Fallout: New Vegas and that Fallout 5 is already in pre-production. In the information provided, Fallout 5 is not presented as a fully revealed project, but as a development status without a public release window.

The sources also draw a link between Obsidian and Bethesda Game Studios. According to the cited reporting, Obsidian would continue its current projects, including Grounded, while also working on a new Fallout project. At the same time, it remains unclear whether that project is Fallout 5 or another Fallout title.

Timeline

2018: Microsoft acquires Obsidian Entertainment and places the studio under Xbox Game Studios.
July 2026: According to the cited Gamespot reporting, Obsidian loses around 25% of its staff.
21 September 2026: Game Rant reports that Bethesda is working on remasters of Fallout 3 and Fallout: New Vegas and that Fallout 5 is in pre-production.
22 September 2026: Kotaku reports that Obsidian is working on a new Fallout project and ties it to a broader Xbox restructuring.
2026: The reporting remains unclear on whether the new Obsidian project is Fallout 5, a spin-off, or another Fallout game.

Background

Obsidian is especially well known to Fallout players for Fallout: New Vegas, which the studio released together with Bethesda. That makes any new report about a Fallout project at Obsidian carry extra weight, especially when the sources also mention Bethesda remasters and a new mainline entry in pre-production.

The provided context also refers to earlier reporting by Jason Schreier about a Fallout-like project at Obsidian that was supposedly intended as a new IP. That remains background in the reporting and is not an official confirmation of the current plans. The mention of a possible Avowed sequel also remains unconfirmed in the available sources.

The core of the reporting is that several Fallout tracks are being mentioned at once, but the status of each project differs. For Obsidian, it is a new Fallout project without a title or release date; for Fallout 5, it is pre-production; and for Fallout 3 and Fallout: New Vegas, it is remaster speculation that is not presented in the provided text as an official Bethesda announcement.