A new massively multiplayer online role-playing game (MMORPG), codenamed Blackbird, from ZeniMax Online Studios — the developers behind The Elder Scrolls Online — has been canceled by Xbox. The cancellation follows a wave of mass layoffs in Microsoft’s gaming division.
This news comes from a report by Jason Schreier published on Bloomberg.
A Project in Development Since 2018
The Blackbird project had been in development since 2018 and was intended to be ZeniMax Online Studios’ first original IP since the release of The Elder Scrolls Online in 2014. The cancellation is part of Microsoft’s broader restructuring, which includes the layoff of over 9,000 employees, many from its gaming division.
ZeniMax’s Reputation and the Potential of Blackbird
ZeniMax Online Studios, based in Maryland, is best known for the ongoing development and support of The Elder Scrolls Online, which remains one of the most popular MMORPGs on the market and continues to receive regular updates.
Blackbird was seen as a fresh opportunity for the studio to expand beyond the Elder Scrolls universe and explore a new game world. Its cancellation highlights the growing challenges in the gaming industry, especially following major corporate mergers and strategic shifts by parent companies like Microsoft.
Impact on Industry and Innovation
The news has raised concerns among fans and industry professionals, as both layoffs and project cancellations often signal reduced investment in creative risks and new IPs. These kinds of cuts can stifle innovation and narrow the range of experiences available to players.
So far, Microsoft has not released an official statement regarding the cancellation of Blackbird. However, multiple reports suggest the decision is part of a broader effort to prioritize high-profile franchises, such as Call of Duty and Fallout.
A Reflection of Industry Trends
The cancellation of Blackbird is not just about one game. It reflects wider industry trends: studio consolidations, shifting business strategies, and an increasing focus on blockbuster titles over experimental or new projects. As companies focus on safe bets, it becomes harder for studios to invest years into ambitious ideas — especially ones that don’t already have brand recognition.
