Fallout 5 Resurfaces with New Leaks, Expect Surprises

New Details Emerge for Dedicated Fallout 5 Development by Different Team at Microsoft

Microsoft recently conducted a significant fourth wave of layoffs, resulting in 9,000 employees departing the company. Its gaming division was particularly affected, with three games reportedly canceled, including the reboot of Perfect Dark, alongside the closure of its development studio. Additionally, ZeniMax Online Studios canceled a massively multiplayer online (MMO) game, a decision attributed to reallocating resources toward numerous Fallout projects. New details regarding Fallout 5 have emerged from the Xbox Two Podcast, hosted by Jez Corden of Windows Central. According to Corden, Microsoft has given Fallout 5 the green light. However, as Bethesda Game Studios is currently occupied with other projects—including a second DLC for Starfield and The Elder Scrolls 6—a different team will handle Fallout 5’s development. This decision aims to establish a dedicated Fallout squad with a long-term vision.

Microsoft Takes Lead on New Fallout Project, Away from Obsidian and ZeniMax Online Studios

Contrary to some reports, Obsidian Entertainment is not working on Fallout 5. Instead, a new internal Microsoft team or an Xbox studio crew has been assigned to initiate development. This new team may comprise developers from ZeniMax Online Studios’ scrapped MMO project, code-named “Blackbird,” or talent drawn from various studios across Microsoft’s network. This shift for ZeniMax Online Studios toward an upcoming Fallout title, rather than “Blackbird,” stems from resource allocation considerations. While the popular Fallout TV series is set to premiere on Amazon in 2024, prompting expectations for new Fallout projects like ports of older games for modern platforms, Microsoft did not capitalize on this particular opportunity. However, Bethesda Game Studios has been considering Fallout 5 for some time; Fallout 4 will mark its tenth anniversary next November. The timeframe for Fallout 5’s release is still uncertain, but its debut might be influenced by the length of the Fallout TV series’ second season, potentially releasing concurrently or later.

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For those keeping an eye on the future of gaming and Microsoft’s strategic moves, a recent post by Ahmed Hassan dives deep into the profitability of Xbox Game Pass despite some rocky patches. Published on July 8th, this insightful piece reveals internal sources confirming that Game Pass is indeed profitable, even factoring in costs related to internally produced games and recent changes in publishing strategies. To learn more about how Microsoft is navigating these challenges while maintaining its commitment to Game Pass as a cornerstone of Xbox’s strategy, be sure to check out the full article Internal Sources Confirm Xbox Game Pass is Profitable Despite Recent Turbulence. For those intrigued by the latest developments in gaming, especially around Marvel’s upcoming projects, be sure to check out Bruno Pferd’s recent post titled “Production of Marvel’s Blade Begins Only at End of 2024,” published on July 10, 2025. The article delves into the start of production for this highly anticipated game developed by Arkane Lyon and offers insights into its exclusive use of the Void Engine graphics technology. With an expected release window between 2026 and 2027, there’s plenty to look forward to in the world of gaming Production of Marvel’s Blade Begins Only at End of 2024. For those interested in a deep dive into the early days of modern gaming, be sure to check out “Xbox 360: How Microsoft Defeated PlayStation 20 Years Ago” by Bruno Pferd (published on July 9, 2025). This insightful piece explores how the launch of Xbox 360 in 2005 marked a pivotal moment for Microsoft in the video game industry, setting new standards with innovative features like Xbox Live and digital marketplaces. Despite facing significant challenges, including hardware issues and intense competition from Sony’s PlayStation 3, the Xbox 360 left an enduring legacy that continues to shape gaming today. Xbox 360: How Microsoft Defeated PlayStation 20 Years Ago.