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Elder Scrolls Online Dev’s Unannounced MMO Was Thriving Before Xbox Cancelation

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Microsoft laid off around 9,100 staff, including hundreds at ZeniMax Online Studios, leading to the cancellation of an unannounced sci-fi MMO codenamed “Blackbird.”
– The Blackbird project, in development since 2018, was building a new game engine and had recently ramped up pre-production with staff reassigned from other teams.
– Xbox previously justified studio closures like Arkane Austin to reallocate resources, but now the entire Blackbird team has been cut and ZeniMax Online Studios head Matt Firor has stepped down.
– Microsoft’s layoffs also impacted other projects, including Perfect Dark’s cancellation, Rare’s Everwild, and Blizzard’s Warcraft Rumble, with further cuts rumored but unconfirmed.
– These layoffs follow earlier cuts in 2024, including 1,900 in January, 650 in September, and 6,000 in May, signaling ongoing restructuring in Microsoft’s gaming division.

The gaming industry faces another major shakeup as Microsoft’s recent layoffs claim an unannounced sci-fi MMO from ZeniMax Online Studios, developers of The Elder Scrolls Online. Codenamed “Blackbird,” this ambitious project had been in development since 2018 and was reportedly thriving before its abrupt cancellation.

Sources reveal that ZeniMax Online Studios was building an entirely new game engine for Blackbird, which contributed to its lengthy development cycle. Despite the extended timeline, pre-production was progressing smoothly, with the team preparing to transition into full production. Microsoft had greenlit scaling up the project, even reassigning staff from other teams, including The Elder Scrolls Online and the now-defunct Arkane Austin, to bolster development efforts.

The sudden termination of Blackbird came as a shock to employees, many of whom learned about the layoffs only after losing access to company communication tools like Slack. Matt Firor, head of ZeniMax Online Studios, has stepped down, leaving the future of the studio uncertain. The cuts are part of broader layoffs affecting nearly 9,100 Microsoft employees, including significant reductions across Xbox’s gaming division.

This marks yet another blow to Microsoft’s gaming ambitions following earlier studio closures, including Arkane Austin and Tango Gameworks. Reports suggest other high-profile projects, such as Perfect Dark and Everwild, have also been canceled, while Blizzard’s Warcraft Rumble is winding down operations. The full extent of the layoffs remains unclear, but the ripple effects are already being felt across the industry.

Microsoft’s aggressive restructuring follows a pattern of workforce reductions over the past year, with thousands of employees let go in multiple waves. The company’s shifting priorities have left many promising projects in limbo, raising questions about its long-term strategy in the gaming sector.

For now, the fate of Blackbird and other canceled titles serves as a stark reminder of the volatility in game development, even for studios with established hits like The Elder Scrolls Online.

(Source: IGN)

Topics

microsoft layoffs 95% zenimax online studios 90% blackbird project cancellation 85% xbox gaming division restructuring 80% game engine development 75% microsoft gaming strategy 75% volatility game development 70% matt firor stepping down 70% everwild cancellation 65% perfect dark cancellation 65%
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