XBOX’s major reset has seen layoffs at nearly all of the company’s studio. Despite its impressive results, with no fewer than three games released last year, Obsidian Entertainment hasn’t escaped this wave.

In a new report, Bloomberg journalist Jason Schreier revealed that about a quarter of the workforce was laid off. What’s more, there has been a big creative shift. As a result, the sequel to Avowed has been canceled. Other titles are also said to have met the same fate.

Furthermore, Schreier states that Obsidian is now working on a new Fallout game. The American studio had previously developed the excellent New Vegas in 2010. Josh Sawyer, the design director, will lead the project. Bethesda Game Studios will also be involved.