Codenamed Blackbird, a new third-person MMO from ZeniMax Online Studios, has been canceled, despite being one of the most internally hyped games at Xbox.
The project was shut down during the July 2025 Xbox layoffs, part of Microsoft’s ongoing restructuring across its gaming division. But Blackbird wasn’t just any game on the chopping block – it was a favorite among Xbox leadership.
According to a report from Jason Schreier, Xbox boss Phil Spencer was so locked into an early build during a studio visit that Xbox President Matt Booty had to tell him to stop playing so they could continue the meeting.
Blackbird cancellation was a huge shock
Blackbird was an ambitious, online looter-shooter similar to the vein of Destiny. It featured third-person combat, co-op-driven progression, and a brand-new sci-fi universe. The team at ZeniMax was aiming for a 2028 release, with years of development already behind them.
ZeniMax Online Studios is best known for The Elder Scrolls Online and has played a major role in keeping live-service content flowing for Bethesda titles like Fallout 76. Blackbird was meant to be their next big step – a new IP with long-term multiplayer ambitions backed by one of the most experienced MMO teams in the industry.
The cancellation came as a shock internally. Studio founder and game director Matt Firor, a key figure behind Elder Scrolls Online, immediately resigned following the decision.
While Microsoft hasn’t publicly addressed the shutdown, Blackbird’s fate highlights that even one of the most promising titles, championed by Xbox’s own Phil Spencer, wasn’t safe, regardless of how much he wanted to keep playing.
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