Jeff Gerstmann Says an Xbox Owned Fallout Project May Be Dead, While Bethesda Still Wants New Fallout and Elder Scrolls Games Kept In House
A new claim from veteran journalist Jeff Gerstmann suggests that a previously unannounced Fallout project was at one point in development at a Microsoft owned studio, but may no longer be moving forward. Speaking on The Jeff Gerstmann Show Episode 196, Gerstmann said he believes the project is “no longer going to see the light of day,” which strongly suggests it may already have been canceled, although there has been no official confirmation from Microsoft or Bethesda.
The more revealing part of Gerstmann’s comments, however, was not just the suggestion that an Xbox owned Fallout project may have died internally. He also said that Todd Howard and the broader Bethesda Game Studios leadership likely want to keep a tight hold on both Fallout and The Elder Scrolls when it comes to brand new mainline entries. According to Gerstmann, rather than handing those franchises to another internal studio, Bethesda would be more likely to staff up internally to make sure it has the resources needed to develop those games itself.
That distinction matters, because it points to a strategy where new installments stay under Bethesda’s direct creative control, while remasters and remakes can be handled elsewhere. Gerstmann specifically framed remakes and remasters as the exception, and recent Bethesda history supports that idea. The Elder Scrolls IV: Oblivion Remastered was handled by Virtuos, which publicly lists the project in its portfolio.
That same logic is also why the latest Fallout 3 Remastered chatter has picked up attention again. In the past few days, multiple outlets have reported that a McFarlane toy listing referenced “Fallout 3 Remastered,” though Bethesda still has not officially announced such a game. At this point, that listing should still be treated as a possible clue rather than confirmation.
For fans who still hope that another Xbox team, especially one with RPG credentials, might be allowed to take a swing at a brand new Fallout, Gerstmann’s comments are unlikely to be encouraging. If his read is correct, Bethesda appears more interested in protecting franchise ownership internally than in broadening creative development across Microsoft’s wider first party structure. That does not rule out outside support on remasters, ports, or technical projects, but it does suggest that new Fallout and Elder Scrolls games remain closely guarded inside Bethesda’s core leadership circle.
It is also worth stressing that this remains a report based on Gerstmann’s claims, not an official roadmap. Still, Gerstmann is one of the more established voices in games media, and the comments fit a broader pattern many players have already sensed for years: Bethesda may be open to external help on legacy content, but when it comes to the future of its biggest RPG franchises, it still wants the final word.
If that is the case, then the bigger question is not just whether a Fallout project at another Xbox studio was canceled. It is whether Bethesda can scale fast enough internally to meet fan demand for both The Elder Scrolls and Fallout without leaving those series stuck in extremely long development gaps.
What do you think: should Bethesda keep full control of new Fallout and Elder Scrolls games, or is it time to let another proven Xbox RPG studio take a shot?
