Following Microsoft's decision to cut thousands of roles across its Xbox division, the broader effects on upcoming game lineups are starting to surface. According to reports, Obsidian Entertainment is undergoing a strategy shift that changes its upcoming project lineup.

Here is what you need to know about the studio's new direction:

A New Fallout Game is reportedly in the Works

Obsidian is reportedly shifting its primary focus to a new Fallout game, according to a report from Bloomberg's Jason Schreier.

The Avowed Sequel is Shelved

This change in direction has impacted other projects. A planned sequel to Avowed—developed by the studio behind Grounded and The Outer Worlds—has reportedly been shelved, alongside several other unannounced projects at the studio.

Driven by Xbox Restructuring

These project shuffles follow Microsoft's recent layoffs, which saw roughly 3,200 employees let go across Xbox, with more than 3,000 redundancies confirmed.