Exclusive Insights: How the Unannounced MMO from The Elder Scrolls Online Devs Thrived Before Surprise Xbox Cancellation

Yesterday, Microsoft announced it would lay off around 9,100 employees. This includes many from its Xbox Gaming divisions. One of the affected projects was an unannounced MMO, codenamed “Blackbird,” developed by ZeniMax Online Studios.

Reports indicate that the entire team behind Blackbird has been cut. This gaming project had been in the works since 2018 and was meant to introduce a new sci-fi universe. A key challenge was developing a brand-new game engine, which added to the project’s timeline. Sources say that pre-production was progressing well, and the team was gearing up for full-scale production.

In the past year, Xbox had been supportive, even approving more resources for the team. Some developers were shifted from other projects, like The Elder Scrolls Online, to help with Blackbird’s development.

However, the recent layoffs have changed everything. Matt Firor, who led ZeniMax, has stepped down. Those affected were kept in the dark about the layoffs, with some learning about their job losses only after losing access to internal communications. This lack of transparency caused confusion and distress among staff.

Microsoft’s gaming division is facing significant upheaval. Reports indicate that other projects, such as Perfect Dark and Everwild, have also been canceled. The recent layoffs follow earlier cuts, including 1,900 positions in January 2024 and thousands more over the past year.

Industry experts suggest that ongoing shifts in the gaming landscape may contribute to such drastic measures. According to a report from Statista, the gaming industry has seen a drop in revenue growth, raising concerns for major players like Microsoft.

Social media has been rife with reactions, as players and developers express shock and disappointment over the layoffs and project cancellations. The gaming community is closely watching how these changes impact future game releases and the overall landscape.

With layoffs impacting so many creative minds, the future of these projects remains uncertain. Microsoft’s recent actions show a major shift in its gaming strategy, and many are eager to see how this will shape the company going forward.

For more details on Microsoft’s recent layoffs, you can visit the official report for up-to-date information.

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