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HoloDust on 19 December 2023
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JEMC said:

I Obsidian pitched doing a Fallout: New Vegas but for The Elder Scrolls, Bethesda said nah we're good thanks
https://www.pcgamer.com/obsidian-pitched-doing-a-fallout-new-vegas-but-for-the-elder-scrolls-bethesda-said-were-good-thanks/
Developer and writer Chris Avellone, formerly of Interplay and Obsidian Entertainment, has recently been musing on Twitter about some of the roads not travelled during his time at the latter studio. One of Avellone's biggest credits is his work on Fallout: New Vegas, regarded by some as the finest 3D Fallout and the closest in spirit to the original isometric games, and—as spotted by GamesRadar+—he says after that Obsidian wanted to do the same: but for The Elder Scrolls.
>> Well, of course they said no. They didn't want someone else to make a better Elder Scrolls than them!

Yeah, this is what I thought as well when I read that - they already had people praising NV for being better than FO3, the last thing they needed is for Obsidian to make better TES (which would've been almost guaranteed) than Bethesda themselves.