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Reading: Rumor has it that Microsoft is eager to expedite the development of Fallout 5, which might result in the project being transferred from Bethesda
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aeon dogma > Blog > Neural Analysis > Rumor has it that Microsoft is eager to expedite the development of Fallout 5, which might result in the project being transferred from Bethesda
Neural Analysis

Rumor has it that Microsoft is eager to expedite the development of Fallout 5, which might result in the project being transferred from Bethesda

Jez Corden has a history of disclosing accurate details about various Microsoft projects prior to their official announcements.

Published: April 28, 2024
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The Fallout franchise, a cornerstone of post-apocalyptic gaming, is poised for a significant revival as Microsoft reportedly plans to fast-track the development of Fallout 5. This news, broken by insider and Windows Central journalist Jez Corden, comes on the heels of a massive popularity surge driven by Amazon’s critically acclaimed Fallout TV series, which debuted in April 2024.

The show’s success—blending the franchise’s signature retro-futuristic aesthetic with gripping storytelling—has reignited global interest in the wasteland, creating a golden opportunity for Microsoft to capitalize on the renewed fervor. Corden’s revelations, shared during a recent episode of the Xbox Two podcast hosted by Rand al Thor 19, have sent ripples through the gaming community, hinting at a bold strategy that could reshape the franchise’s future.

In the podcast, available at https://www.youtube.com/watch?v=4frfcWeJMAc, Corden emphasized Microsoft’s acute awareness of the soaring demand for the Fallout series. “The company is well aware of how successful the next title in the series will be,” he stated, underscoring the franchise’s potential to dominate the market in the wake of the TV show’s cultural impact. The Amazon series, lauded for its faithful adaptation of the Fallout universe—complete with Vault-Tec conspiracies, irradiated monsters, and a darkly humorous tone—has drawn in both longtime fans and newcomers, with viewership numbers reportedly exceeding 100 million in its first month. This heightened interest has created a perfect storm for Fallout 5, positioning it as a potential blockbuster if Microsoft can deliver it swiftly.

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However, the path to Fallout 5’s release is fraught with challenges, primarily due to Bethesda Game Studios’ packed schedule. Bethesda, the traditional steward of the Fallout series, is currently deep in development on The Elder Scrolls 6, a project that has been in pre-production since 2018 and is expected to launch no earlier than 2026. This timeline was confirmed by Bethesda’s Todd Howard in a 2022 interview with IGN, where he outlined the studio’s roadmap | “Elder Scrolls 6 is in pre-production, and we’re going to be doing Fallout 5 after that, so our slate’s pretty full going forward for a while.” Howard’s statement suggested that Fallout 5 might not see the light of day until the late 2020s or even 2030—a wait that many fans, buoyed by the TV series’ success, are unwilling to endure. Corden’s report suggests Microsoft is unwilling to wait that long either, proposing a radical solution | transferring Fallout 5’s development to another studio to expedite the process.

This potential shift in development hands is a significant departure from tradition. Bethesda has helmed every mainline Fallout game since acquiring the IP in 2007, from Fallout 3 to Fallout 4 and Fallout 76. The only exception was 2010’s Fallout | New Vegas, developed by Obsidian Entertainment, which remains a fan-favorite for its rich storytelling and role-playing depth. Corden’s sources indicate that Microsoft, which acquired Bethesda and its parent company ZeniMax Media in 2021 for $7.5 billion, is seriously considering outsourcing Fallout 5 to another of its first-party studios. Two likely candidates have emerged | Obsidian Entertainment and inXile Entertainment, both of which Microsoft also owns following its 2018 acquisition of the studios. Obsidian, known for Fallout | New Vegas and currently working on Avowed and The Outer Worlds 2, has a proven track record with the Fallout IP. InXile, the studio behind the Wasteland series—a spiritual predecessor to Fallout—brings its own post-apocalyptic expertise, though it’s also busy with projects like Clockwork Revolution.

falout 5 obsidian studio

The idea of handing Fallout 5 to another studio isn’t without precedent, but it’s a bold move that could redefine the franchise’s trajectory. Corden noted that Microsoft’s leadership is “hyper-aware” of the franchise’s potential, especially given the TV series’ role in expanding its audience. The show’s success has already driven a resurgence in player numbers for Fallout 4 and Fallout 76, with Steam data showing a 200% spike in concurrent players in April 2024 compared to the previous year. A new Fallout game, released while this wave of enthusiasm is still cresting, could achieve monumental success—potentially rivaling the sales of Fallout 4, which moved over 12 million copies in its first year. However, outsourcing development risks alienating fans who associate Bethesda’s distinct touch with the series’ identity, even as it promises a faster turnaround.

Jez Corden’s track record lends credibility to these rumors. The Windows Central journalist has a history of accurately leaking Microsoft projects before their official reveals, including Pentiment, South of Midnight, Clockwork Revolution, Towerborne, and Ara | History Untold. His insights into Microsoft’s gaming division, bolstered by his deep industry connections, make this report more than mere speculation. Obsidian, for instance, could bring its narrative prowess to a new Fallout chapter, but its current commitments might delay progress. InXile, with its Wasteland pedigree, offers a thematic fit, yet its focus on Clockwork Revolution poses similar challenges.

The broader context of Microsoft’s strategy adds another layer to this story. Since acquiring ZeniMax, Microsoft has sought to maximize the value of its IPs, particularly Fallout, which remains one of Xbox’s most iconic franchises. The company’s recent moves—like releasing Fallout 4’s next-gen update in 2024 and greenlighting a second season of the Amazon series—signal a concerted effort to keep the franchise in the spotlight. Accelerating Fallout 5’s development, even if it means shifting Bethesda’s role to a supervisory one, aligns with this goal. It also reflects a pragmatic response to Bethesda’s lengthy development cycles, which often span 4-5 years per title, as seen with Starfield (2023) and the ongoing work on The Elder Scrolls 6.

For fans, the prospect of Fallout 5 arriving sooner rather than later is thrilling, but it comes with cautious optimism. The Amazon series has set a high bar, capturing the Fallout universe’s blend of retro-futurism, survivalism, and dark humor in a way that’s resonated with audiences. A new game that taps into this momentum could redefine the franchise for a new generation, especially if it incorporates modern gameplay trends like deeper RPG mechanics, co-op elements, or next-gen visuals powered by Unreal Engine 5 (a shift Bethesda has already embraced for The Elder Scrolls 6). Yet, the choice of developer will be crucial—whether it’s Obsidian, inXile, or another studio, fans will expect a game that honors Fallout’s legacy while pushing it forward.

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