Bethesda said no to more Obsidian spin-offs

Avellone felt such an approach could be mutually beneficial, providing fans with more content while maintaining the core integrity of Bethesda's worlds. Unfortunately, Bethesda wasn't having it.

Avellone cited the mixed reception of Fallout: New Vegas, particularly its technical performance at launch, as a likely reason for Bethesda's reluctance. He also noted that the development of The Elder Scrolls Online, which has become a successful and long-running MMORPG, might have influenced Bethesda's decision to focus on their in-house projects rather than outsourcing to Obsidian.

Bethesda's protective stance regarding The Elder Scrolls and Fallout is understandable. Although the studio's standing within the gaming industry have suffered in recent years after back-to-back duds in Fallout 76 and Starfield, it remains a marquee studio, especially now that it's owned by Microsoft.

Preferring to work on its biggest and best-selling properties instead of outsourcing them to other studios might be just its way of making sure it has full control over what's going on.

However, this might change after Todd Howard steps down, presumably once The Elder Scrolls VI is released at some point in the future.

As for Obsidian, the studio remains committed to working its magic by alternating small-time and big-budget titles like The Outer Worlds, Grounded, and Pentiment, in recent years. It's currently working on the Xbox-exclusive RPG, Avowed, set for release in 2024. Ironically, many have referred to Avowed as a TES-like game. But, it remains to be seen if it can live up to the said expectations, especially after the recent comments about its graphics.

In the meantime, Bethesda is promising big things for Starfield as it makes fans wait for the next The Elder Scrolls and Fallout games.