It works more as an aim assist now than anything, really.
Fallout games have never quite been known for their shooting. Fallout 4 was the best of the lot, and it was actually quite fun on that front, but even it can’t go toe to toe with actual shooters. The games usually get around this problem with VATS, which lets you slow down time and aim at enemy body parts individually. VATS works well for something like an RPG, which is why it has been so popular- the issue is that the upcoming Fallout 76 is a multiplayer, shared world shooter.
How does VATS translate to that? It seems like it might end up working well, based on a brand new gameplay video for the game (one among many today) that you can see for yourself below. VATS lets you move around now, and acts more as an aim assist system than something that outright slows down time, which obviously is better suited to an actual multiplayer game.
Fallout 76 launches for PS4, Xbox One, and PC on November 14. Make sure to check out the newest details for the game, which, among other things, detail how looting houses will work in it.