Bethesda Game Studios has placed Fallout 5 into early pre-production on Creation Engine 3 while simultaneously advancing remasters of Fallout 3 and New Vegas plus a separate Fallout title with Obsidian. The July 17 update underscores Fallout as a top priority even as internal reports describe post-layoff disarray and risks of further delays to the next Elder Scrolls title.

Fallout 5 remains our long-range destination, and we have multiple Fallout projects in active development right now.
Developers remaining at Bethesda following layoffs described the studio as being in disarray.
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A union delegate told Le Monde that Arkane Lyon faces closure by November 13 unless a buyer is found, with 217 jobs at risk. Microsoft says it is still exploring options and seeking a partner for the studio's next project.
Fortune reports that Xbox has layoff rounds planned for October, November and January. CEO Asha Sharma has cut 1,868 people so far as part of plans to reduce headcount by 3,200 over the next year, and Fortune notes layoff plans can change.
Xbox is planning a major overhaul of Game Pass that would let players choose features à la carte, including add-ons for console-only games, cloud gaming and multiplayer, while keeping a tiered structure, Fortune reported, citing people familiar with the strategy. Microsoft has not announced the change.
Xbox CEO Asha Sharma plans a next-generation handheld by the 2027 holiday season and the next Xbox console by holiday 2028, Fortune reports, citing people familiar with the strategy. Microsoft has not confirmed the timeline. Fortune also reports a dispute between the Xbox and Windows teams over the handheld's operating system.
Shrek 2 Remastered launches Nov. 10, 2026 on Xbox Series X|S, a date revealed during today's ID@Xbox Showcase. Aspyr rebuilt the 2004 co-op game with 4K, better textures, an enhanced UI, Photo Mode and Cheat Mode.