Microsoft Cancels ZeniMax’s New MMO, Lays Off Thousands
▼ Summary
– Microsoft’s layoffs led to the cancellation of an unannounced MMO codenamed Blackbird, which had been in development at ZeniMax Online Studios since 2018.
– Multiple ZeniMax employees, including lead engineer Aaron Barnett and senior producer Chris Linn, confirmed the project’s cancellation and their layoffs on LinkedIn.
– The entire development team for the MMO was reportedly let go, with estimates suggesting the team had grown to over 200 people by 2022.
– Microsoft announced 9,000 layoffs, many in its gaming division, despite reporting a $88.1 billion net income in 2024, a 22% increase from 2023.
– Rare’s Everwild project, announced in 2019, was also reportedly canceled due to the Microsoft layoffs.
Microsoft’s recent workforce reductions have led to the abrupt cancellation of an unannounced MMO project at ZeniMax Online Studios, the team behind The Elder Scrolls Online. The game, internally referred to as Blackbird, had been in development since 2018 and was poised to be an entirely new IP. While Microsoft has yet to confirm the news, multiple ZeniMax employees have publicly acknowledged the project’s termination alongside their own layoffs.
Key figures from the development team, including lead engineer Aaron Barnett and senior character artist Eric Hall, shared updates on LinkedIn confirming the cancellation. Senior producer Chris Linn described the project as “amazing” before revealing his departure, while principal economy designer John Hartzell noted the abrupt nature of the layoffs, his Slack account was deactivated mid-message. Game director Ben Jones suggested the entire team working on the MMO had been let go, with reports from 2022 indicating the team had grown to around 200 developers.
The cuts are part of Microsoft’s broader restructuring, which eliminated roughly 9,000 jobs across the company, including significant reductions in its gaming division. Xbox head Phil Spencer framed the decision as a strategic move, citing record engagement across Xbox platforms despite the layoffs. The timing is particularly striking given Microsoft’s recent financial success, the company reported a $88.1 billion net income in 2024, marking a 22% increase from the previous year.
Adding to the fallout, Rare’s long-awaited Everwild has reportedly been shelved as well. ZeniMax’s careers page still promotes opportunities to work on “kickass new projects,” though the fate of Blackbird raises questions about the studio’s current pipeline. Requests for comment from ZeniMax have so far gone unanswered.
(Image credit: ZeniMax Online Studios)
The gaming industry continues to face turbulence, with major studios grappling with restructuring even amid financial success. For those affected, the abrupt end to years of work underscores the volatile nature of game development under corporate ownership.
(Source: PCGAMER)
