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…Here one can see they're making a reboot of ClayFighter, was it nice to see the talking heads in FO1+2 made of clay![interplay.com]
After Black Isle was shut down, many key people like Feargus Urquhart and Chris Avellone formed the core of the newly established Obsidian Entertainment and developed Fallout: New Vegas, as well as many other IPs across many different publishers.
Apparently, Obsidian and inXile formed a "friendship agreement" that allows them to share the technology and resources with each other (for example, many of the Obsidian staff helped out with the development of Wasteland 2).
Only a couple of guys were drafted back into the reformed Black Isle studios, which is working on the Project V13 (previously Fallout Online, before Bethesda Softworks sued Interplay over the Fallout IP).
The rest of the laid-off Black Isle staff moved on to other studios or simply left the industry altogether.