Microsoft has acquired Bethesda, leading to speculation about a new Fallout RPG being developed by Obsidian, with Josh Sawyer, director of Fallout: New Vegas, at the helm. Reports indicate that Obsidian has paused the production of an Avowed sequel and other projects to focus on this new Fallout game. However, this development occurs amidst significant layoffs at Xbox, raising concerns about team morale and stability.