Fallout 5 Reportedly Greenlit as Microsoft Cancels MMO Project Blackbird

Is Fallout 5 coming? (Image Credit: Bethesda)

Microsoft and Bethesda are reportedly moving full steam ahead with Fallout 5, signaling a strategic shift in focus toward one of the company’s most iconic franchises.

According to recent statements from Windows Central’s Jez Corden on The Xbox Two podcast, Fallout 5 has been “fully greenlit” for development—though at the cost of another ambitious project.

The now-canceled title, codenamed Project Blackbird, was being developed by ZeniMax Online Studios and had been in the works for several years. Corden explained that Microsoft made a calculated decision to pull the plug on the MMO, opting instead to invest in a more established and reliable IP. While Project Blackbird was still under wraps publicly, its MMO genre reportedly posed stiff competition against giants like World of Warcraft and The Elder Scrolls Online, which may have influenced the decision.

“From what I heard, it was a case of tradeoffs,” Corden said. “Microsoft asked whether they should keep sinking money into something uncertain or redirect it to a surefire win like Fallout.”

Although exact details remain scarce, the greenlighting of Fallout 5 suggests that internal discussions have evolved beyond the planning phase. For years, the game was believed to exist only as a rough concept or “one-pager” within Bethesda Game Studios. Now, it seems plans are solidifying, although no studio has officially been named as the developer.

Corden did note that the core Bethesda team is still busy with post-launch content for Starfield and the long-awaited The Elder Scrolls 6, which likely rules them out for immediate work on Fallout 5. He also floated the idea that another studio—perhaps a newly formed or external one—might take the reins on the next Fallout installment.

That said, the Fallout franchise has been regaining momentum in recent months, especially with the growing success of Amazon's Fallout TV series. Jordan Middler of VGC has recently stated that multiple Fallout-related projects could be in the pipeline, including "one you’re all wanting.”

For longtime Fallout fans, the news offers a glimmer of hope. It's been nearly a decade since Fallout 4 launched, and while Fallout 76 tried something different with its online multiplayer focus, many still crave the classic single-player experience that defines the series.