Xbox Execs Loved ZeniMax’s Destiny-Style MMO Before Cancellation

▼ Summary
– Microsoft announced 9,000 new layoffs, following 12,000 job cuts in the past two years, leading to studio closures and game cancellations like Blackbird.
– Blackbird was an unannounced sci-fi noir MMO in development since 2018 by ZeniMax, featuring unique traversal mechanics and a team of 300 employees.
– Xbox executives, including Phil Spencer, were highly impressed with Blackbird’s demo, but the project was abruptly canceled with a tentative 2028 launch scrapped.
– Developers discovered Blackbird’s cancellation via missing Slack accounts, leaving them in limbo as Microsoft negotiates severance with ZeniMax’s union.
– Despite record profits ($109B operating profit) and Xbox’s growth, Microsoft’s layoffs and project cancellations contrast with its public success narrative.
Microsoft’s recent workforce reductions have sent shockwaves through the gaming industry, with 9,000 jobs cut in the latest round of layoffs. Among the casualties was Blackbird, an unannounced sci-fi MMO in development at ZeniMax that had reportedly won over Xbox leadership before its abrupt cancellation.
Sources reveal that Blackbird had been in production since 2018, envisioned as a Destiny-inspired third-person shooter with a noir aesthetic and dynamic movement mechanics. The game’s 300-person development team crafted a world where players could scale walls, grapple across environments, and dash through the air, features that reportedly impressed Microsoft Gaming CEO Phil Spencer during an internal demo earlier this year.
The project’s momentum came to a sudden halt this week when employees discovered key leadership accounts missing from Slack. A morning meeting confirmed the worst: Blackbird had been shelved indefinitely, leaving developers in limbo as Microsoft negotiates severance with ZeniMax’s unionized workforce.
What makes the cancellation particularly jarring is the contrast with Microsoft’s recent financial success. In a memo to staff, Spencer highlighted record engagement metrics, while CEO Satya Nadella boasted a $109 billion operating profit in the company’s latest annual report. For a project that once had executives fighting over controller time, Blackbird’s demise underscores the harsh realities of corporate restructuring, even for games with undeniable potential.
(Source: PC Gamer)





