ZeniMax’s Project Blackbird Cancelled After Seven Years in Development

Microsoft has cancelled Project Blackbird, an ambitious massively multiplayer online game developed by ZeniMax Online Studios, as part of sweeping layoffs that have affected around 9,000 employees across Xbox’s gaming division. The project, in development since 2018, was shelved despite strong internal praise, including from Xbox chief Phil Spencer, who was reportedly impressed by early demos.

At its height, Project Blackbird employed nearly 300 developers and aimed to deliver a science-fiction MMO with noir influences, fluid movement mechanics such as wall-running and grappling hooks, and looter-shooter elements inspired by titles like Destiny and Warframe. Set on a tidally locked planet called Soteria, the game envisioned players taking the role of “Revenants,” augmented humans navigating the vertical megacity of Exodus. A tentative release window had been projected for 2028.

The cancellation came suddenly, with developers reporting that they were locked out of communication channels without warning. The news coincided with the departure of Matt Firor, head of ZeniMax Online Studios for 18 years, who was replaced by Jo Burba to oversee the transition.

The studio’s union, ZeniMax Online Studios United–CWA, representing 222 affected employees, condemned the move as “stealing a future” from the team and the community, and has begun negotiations over severance and worker protections. While no layoffs at ZeniMax Online have yet been finalized, uncertainty remains over the studio’s long-term staffing.

Despite the setback, ZeniMax leadership reaffirmed its commitment to The Elder Scrolls Online, promising continued expansions, features, and improvements. The end of Project Blackbird closes the door on what had been positioned as one of Xbox’s most ambitious multiplayer projects in years, underscoring the human cost of Microsoft’s restructuring.