Todd Howard has dismissed what he called “fan chatter” about a supposed rivalry between Fallout developers Bethesda Game Studios and Obsidian Entertainment.
Speculation about a feud between the two studios revolves around the idea that Bethesda resents Obsidian for making the beloved Fallout: New Vegas, which some consider the best Fallout game.
But Howard himself never suggested that this was the reality of the studios’ relationship, and sometimes even denied it altogether. For example, Howard told IGN back in 2019—after Microsoft bought Obsidian—that BGS “has always had a great relationship with them” and in New Vegas, “there’s only one group that we really trust to do this, and that’s been amazing.”
“For me, it was this group or nobody,” Howard said.
Every IGN Fallout review
Fast forward to 2026, following the latest wave of layoffs at Xbox and confirmation that Obsidian is once again working on a new Fallout game. Howard told Windows Central that BGS is “excited” to be working with the developers of Avowed, The Outer Worlds, Grounded and Pentiment.
“I appreciate the fan chatter, but behind the scenes there is a huge amount of mutual respect (between Bethesda and Obsidian),” Howard said. “We’re always wondering if we can find a way to work together properly. And when these things come up, I think I definitely look at the whole franchise, as you see in the note, at everything that’s going on with Fallout.
“You kind of ask, is there a way or a window or a pocket where we could do something together that would actually make sense? And so we’re really excited about the opportunity to work together.”
Howard’s reference to the “memo” is a reference to the BGS plan released today. This confirms that Fallout 5 has entered pre-production, and remasters of Fallout 3 and Fallout: New Vegas are in development. While we now know Obsidian’s Fallout game is real, we don’t know what it is. Could this be Fallout: New Vegas 2? Or perhaps it’s a completely different Fallout game?
Obsidian has also been hit by layoffs at Xbox and has reportedly canceled Avowed 2 as part of new Xbox CEO Asha Sharma’s focus on the company’s biggest franchises. This, of course, includes The Elder Scrolls VI, which is the focus of BGS.
“Fallout is one of our top priorities today,” Howard said in a message to fans. “Fallout 5 remains our long-term goal, and we currently have several Fallout projects in active development.
“Fallout 76 continues to be home to millions of players exploring Appalachia together. There are about 70 free updates released to date, and the journey is far from over. In fact, we have a major expansion planned for next year: Fallout 76: Raven Rock, a prequel to Fallout 3.
“Fallout 4, the most award-winning game in the franchise, just celebrated its 10th anniversary and recently sold over 35 million copies, continuing to attract new audiences every year.
“We also know that many players want to return to previous versions of Fallout. While we’re not announcing any dates today, we are working on remasters of Fallout 3 and Fallout: New Vegas.
“Fallout Shelter continues to be the most popular way to experience Fallout on the go, with over 250 million players. There’s more to Fallout Shelter, including new seasons. An unscripted Fallout Shelter television project is also in development with our partners Amazon Studios and Kilter Films.
“We would like to congratulate Kilter Films and Amazon Studios on their 10 Emmy Award nominations for Fallout Season 2. Production on Season 3 is already underway.
“While we won’t be hosting a traditional Fallout Day broadcast this year, we are already planning something special for Fallout’s 30th anniversary in 2027, when Fallout Day will be celebrated live in Washington, D.C.”
Photo by Gilbert Flores/Variety via Getty Images.
Wesley is IGN’s News Director. Find him on Twitter at @wyp100. You can contact Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.