Veteran Elder Scrolls Online devs set up new worker-owned studio after Xbox cancelled their last game: “We only answer to people who are passionate about games”

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After Microsoft canceled their unreleased action game and laid off many employees, a team of former The Elder Scrolls Online developers have started their own studio. What’s especially great is that this new studio is completely self-funded and owned by its workers.

Microsoft had another round of layoffs just this summer, and as a result, several game projects were cancelled. These included the planned remake of Perfect Dark, Rare’s Everwild, and a years-in-development, unannounced game from the creators of The Elder Scrolls Online.

A new independent game studio, Sackbird Studios, has been launched by the developers who previously worked on Elder Scrolls Online and a cancelled project called Blackbird, as Bloomberg reported. Led by veteran ESO designer Doug Carroll, the studio is self-funded and employee-owned, giving the team complete creative freedom to make the games they want, without outside investors.

David Worley, COO of Sackbird, explained that after many years working on large-scale games, they wanted the ability to take creative chances without needing approval or focusing solely on short-term profits. Being fully owned and funded by its employees allows Sackbird to prioritize passion for games above all else.

CEO Lee Ridout shared that their experience at ZeniMax Online Studios was incredibly formative, both professionally and personally. When they heard about the cancellation of Blackbird and the resulting job losses, it motivated them to act. They decided the best way to safeguard their work and team was to build a studio that prioritized creative freedom above all else. A commendable goal, indeed.

Sackbird is a new game studio with a small team of less than 10 people. According to a LinkedIn post, they aim to develop exciting and memorable multiplayer games for PC and consoles. Since the studio was recently founded, it may take some time before they officially announce their first game.

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2025-10-09 14:41