After 7 years of development, Elder Scrolls Online developer’s new MMO is reportedly canceled amid wider Xbox layoffs

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According to reports, it appears that Microsoft has decided to halt the development of Zenimax Online Studios’ upcoming MMO (Massively Multiplayer Online) game, which was known internally by the code name “Blackbird”, due to ongoing staff reductions.

Although Phil Spencer declared that the strength of Xbox’s platform, hardware, and game development plans had never been greater, there are signs of another major round of layoffs affecting Xbox studios for the fourth time in 18 months. Rumors suggest that Rare’s Everwild was cancelled as part of this process, and now there are whispers that Zenimax Online Studios’ upcoming project has also been shelved.

Jason Schrier from Bloomberg announced on BlueSky that the MMORPG project being developed by Zenimax Online Studios (known for creating Elder Scrolls Online) has been terminated as part of the recent layoffs at Xbox. This project, internally referred to as Blackbird, had been in development since 2018.

It’s additionally reported by Schrier that employees at Zenimax Online Studios received no communication from HR regarding their job status, and their Slack accounts were deactivated without warning, which could be a sign of potential job losses. Unverified reports suggest that the studio might also undergo layoffs along with this shutdown.

One developer commented, “Jason Schreier seems to be receiving these updates sooner than me, as an employee affected by Zenimax Online Studios. This has added a somewhat comical, almost farcical dimension to the situation.

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2025-07-02 19:42