A new Fallout project reportedly under development at an internal Xbox Game Studios team has been canceled, according to veteran journalist Jeff Gerstmann. The unannounced title, rumored to be from a Microsoft-owned studio separate from Bethesda Game Studios, is no longer moving forward. This decision reinforces Bethesda’s tight control over its major franchises, with the company recently stating it has hundreds of developers working on the Fallout series across multiple projects.
Rumor Suggests Second Studio’s Fallout Project Scrapped
Gerstmann revealed the cancellation on his podcast, citing sources familiar with the matter. The nature of the project, whether a traditional game or a cloud-based experience, remains unclear. This news follows earlier reports of multiple Fallout titles in development, one of which materialized as the recent Fallout 4 Anniversary Edition upgrade.
Bethesda Game Studios Retains Firm Control Over Core IP
The cancellation aligns with comments from Bethesda’s Todd Howard, who emphasizes maintaining creative direction over the Elder Scrolls and Fallout franchises internally. Gerstmann noted that Bethesda is more likely to expand its own teams than assign core series projects to other studios. This strategy centralizes development of flagship titles under the original creators.
Outsourcing Strategy Points to Remasters, Not New Entries
While new mainline games stay in-house, remasters are treated differently. Industry expectations suggest the rumored Fallout 3 remaster will be outsourced, similar to the handling of The Elder Scrolls IV: Oblivion remaster by support studio Virtuous. This allows Bethesda’s primary teams to focus on future original titles like the anticipated Fallout 5.
Immediate Impact Leaves Fans Awaiting Official Announcements
The cancellation news shifts focus to officially confirmed projects. Bethesda continues to support Fallout 76, which recently surpassed 20 million players, and is expected to announce the Fallout 3 remaster formally following product listing leaks. The gaming community now awaits further details on these projects and the long-term roadmap for the post-apocalyptic series.


