The Elder Scrolls Online Developer ZeniMax Cancels MMO and Studio Head Steps Down
ZeniMax Online Studios has canceled an unannounced MMO following mass layoffs across Microsoft and Xbox Game Studios, with the developer’s president and The Elder Scrolls Online director Matt Firor stepping down from his role.
Following ongoing cuts across Microsoft, ZeniMax Online Studios has canceled an unannounced MMO reportedly in development for several years.
This decision comes amid changes within Xbox Game Studios, which include the closure of The Initiative, the developer of the Perfect Dark reboot. ZeniMax’s head and director of The Elder Scrolls Online, Matt Firor, is also stepping down after 18 years at the studio.
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A Sudden Turn for ZeniMax’s Future Projects
ZeniMax Online Studios, developer of The Elder Scrolls Online, was reportedly working on an unannounced MMO that had a “sizable” team and was an all-new IP “unrelated” to Fallout and ESO, according to IGN. That project has now been shut down following a round of mass layoffs across Microsoft’s gaming division.
The game, codenamed “Blackbird,” was reportedly in development since 2018 and would have been ZeniMax’s first new release since ESO launched in 2014. The cancellation, as part of recent Xbox layoffs, is just one of several projects Microsoft has canceled, as the company looks to restructure and refocus in a changing industry landscape.
BREAKING: The new MMORPG project from Zenimax Online Studios, maker of Elder Scrolls Online, has been canceled as part of the Xbox layoffs, sources tell Bloomberg News. The project, code-named Blackbird, had been in development since 2018. Still more news to come this morning.
— Jason Schreier (@jasonschreier.bsky.social) 2 July 2025 at 16:05
Leadership Shake-Up: Matt Firor Steps Down
As part of the ongoing layoffs and multiple studio shake-ups across Microsoft and Xbox, ZeniMax Online Studios head and The Elder Scrolls Online director, Matt Firor, has announced he is stepping down after 18 years, “later this month.”
ZeniMax has confirmed that Matt will be replaced by Joseph Burba as studio director. Burba has over 20 years in the industry, previously working at NCSoft, producer at 2K Games, production manager on Darksiders 2 and Dark Millennium Online, and more recently as studio general manager at ZeniMax.
What This Means for the MMO Landscape
The development of MMOs has always been risky, especially with increasing production costs. Even the largest and most established studios are struggling to reach the launch phase. This cancellation from ZeniMax reflects the difficulty of developing MMOs, even for those with established IPs and loyal communities.
While it’s bad news for players looking for something new within the MMO space, it could prove positive for fans of The Elder Scrolls Online, as Microsoft’s ongoing restructuring looks to focus on its core IPs, which include Bethesda’s Elder Scrolls franchise. There could be a push on ESO content going forward.
Conclusion
ZeniMax Online Studios has canceled an unannounced MMO in development since 2018, with studio head Matt Firor stepping down. Are you disappointed to see another game canceled? What do you think the game was? Share your thoughts in the comments.
Fueled by a passion for gaming and the ever-evolving world of gaming news, Daniel loves connecting with seasoned and new players to bring games to life on the page, exploring their narratives and gaming trends. A self-published fiction and fantasy author, Daniel has nearly 20 years of experience writing gaming news and a love for storytelling that drives his enthusiasm to deliver breaking news, in-depth analysis, and industry innovations. You will find him in-game as "Windfell."
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