Bethesda confirms Fallout 5 in preproduction as Xbox restructuring continues
The studio’s director says the next mainline entry will share technology with The Elder Scrolls VI, while a new title develops at Obsidian Entertainment.
Bethesda Game Studios has officially confirmed that Fallout 5 is in preproduction, describing the title as a long-range priority for the developer. The announcement comes as Microsoft’s gaming division navigates a significant restructuring period, dubbed a "reset," which involves the layoff of approximately 3,200 employees across various studios, including id Software and Obsidian Entertainment.
Bethesda director Todd Howard stated that Fallout 5 will utilise the same technology platform as The Elder Scrolls VI. Howard clarified that The Elder Scrolls VI remains the studio’s primary development focus, with the majority of the team currently working on the next chapter of that franchise, which was originally announced in 2018. He noted that the game is "where we planned to be" and that the team is playing it daily, though no release window has been provided.
In addition to the mainline sequel, Howard revealed that a new Fallout title is in development at Obsidian Entertainment, the studio behind 2010’s Fallout: New Vegas. He also confirmed that remasters of Fallout 3 and Fallout: New Vegas are underway, although neither project has a release date. The confirmation marks the first official look at the franchise since the launch of Fallout 4 more than a decade ago.
The timing of the announcement coincides with ongoing tensions within the organisation. ZeniMax employees recently held a rally in Maryland to protest the layoffs associated with Xbox’s restructuring. Microsoft acquired Bethesda and its parent company, ZeniMax, for $7.5 billion in 2021, and Xbox CEO Asha Sharma has previously indicated that the brand would focus more on its most bankable franchises as part of the upheaval.
Howard addressed the broader strategy in a statement, saying the company is "investing more deeply in the worlds players love" and aiming to bring teams closer together to support games for decades. He also confirmed that the Starfield franchise remains an important part of the company’s future. The slate of announcements follows a major Xbox showcase event held in June, with Howard describing Fallout 5 simply as the studio’s "long-range destination."
