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First reported by Variety
Xbox to Lay Off 3,200 Employees and Sell Four Studios in Major Restructure

After A Quarter of Its Staff Was Laid Off, Obsidian Will Make The Next Fallout Game, Avowed Sequel Canceled

Obsidian reportedly lost a quarter of its staff in this week's 1,600 Xbox layoffs, and as part of restructuring, the company will begin work on a new Fallout game under Fallout: New Vegas' director.

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