An unannounced MMO from The Elder Scrolls Online developer has been canceled by Xbox after seven years of work

An unannounced MMO from The Elder Scrolls Online developer ZeniMax Game Studios has been canceled
The project is just one of many that have been canceled amid mass layoffs at Microsoft
ZeniMax Game Studios head Matt Firor has also stepped down

Microsoft has canceled an unannounced massively multiplayer game (MMO) from The Elder Scrolls Online developer ZeniMax Game Studios.

This comes amid mass layoffs at Microsoft that have seen 9,000 staff members affected, as well as multiple other games to be canceled, including Perfect Dark and Everwild.

The project, code-named Blackbird, was said to be an MMO and a brand new IP unrelated to The Elder Scrolls or Fallout. Development began in 2018 and has been in the works for seven years. It appears that the team has also been cut as part of the layoffs.

According to Bloomberg reporter Jason Schreier on Bluesky, “some employees at ZeniMax Online Studios are now watching their Slack accounts abruptly get locked out,” and they’ve received no word from HR or been informed about the status of their employment, “just an ominous Slack deactivation.”

In addition, ZeniMax Game Studios’ head Matt Firor has stepped down from his position and been replaced by Joseph Burba.

“After more than 18 years leading ZeniMax Online Studios, I’ll be stepping away later this month,” Firor said on X / Twitter.

“While I won’t be working on the game anymore, I will be cheering you on and adding to the thousands of hours I’ve already spent in-game. There are many more stories to be told, adventures to be had, and I know this amazing community will carry that shared legacy and success forwards.”

Please read this update from ZOS President, Matt Firor. pic.twitter.com/M00G1QZZrHJuly 2, 2025

Jill Braff, head of studio for Bethesda and ZeniMax, also shared a staff memo announcing the leadership changes while also commenting on the latest job cuts (via IGN).

“Dear Team. Building on Matt’s note below, I first want to take a moment to acknowledge the changes happening today across Microsoft Gaming, including Bethesda/ZeniMax,” Braff wrote.

“Saying goodbye to talented colleagues and friends is painful. These individuals have contributed meaningfully to our studios, our games, and our culture. I want to thank them for the contributions they have made that shaped our journey as a team and as a company.

“I also want to share today that Matt Firor has decided to step down from his role as the head of ZeniMax Online Studios, effective July 14. I want to offer heartfelt thanks to Matt for his incredible leadership of ZOS over the last 18 years. As a driving force behind the success of The Elder Scrolls Online, Matt has grown the game into one of the most enduring and beloved MMOs in the industry.”

He continues, writing, “I’m pleased to announce that Joseph (‘Jo’) Burba will be taking over for Matt Firor as the new Studio Director for ZOS. With over 20 years in the industry, his extensive experience in live service multiplayer titles, and a strong background in various roles across ZOS the past thirteen years, Jo is well-prepared to lead the team into its next chapter.

“Matt, Jo, and I will work together to finalize our transition plan – more to come soon. In the meantime, please join me in wishing Matt all the best and congratulating Jo on his new role. Thank you to all of you for your dedication to Bethesda/ZeniMax, our community, and to each other.”

Braff references a prior memo from the head of Xbox Game Studios, Matt Booty, in which he confirmed the many game cancellations, the closure of developer The Initiative, and the cancellation of “several unannounced projects”.