ZeniMax Online Studios founder Matt Firor confirmed his resignation today, citing Microsoft's cancellation of Project Blackbird as the direct cause. The unannounced MMORPG represented "the game I had waited my entire career to create," Firor stated in a LinkedIn post.
Microsoft canceled Project Blackbird in summer 2025 during broader Xbox Game Studios layoffs that affected hundreds of employees. The sci-fi IP had been in development since 2018 at ZeniMax Online, the studio behind The Elder Scrolls Online.
Firor departed ZeniMax Online in July 2025 following the project's termination. He had founded the studio in 2007 after ten years at Mythic Entertainment and oversaw The Elder Scrolls Online's 2014 launch and subsequent expansions.
"The most obvious explanation is the correct one," Firor wrote about his departure. "Project Blackbird was the game I had waited my entire career to create, and having it canceled led to my resignation."
The cancellation resulted in layoffs for every member of the Project Blackbird team. Some affected developers have since formed new studios, including employee-owned Sackbird Studios, which aims to operate without traditional AAA constraints.
Firor expressed particular concern for team members he worked with for over 20 years. "My heart and thoughts are always with the impacted team members," he wrote, calling them "the most dedicated, amazingly talented group of developers in the industry."
The veteran developer clarified he's not involved with projects started by former ZeniMax Online colleagues, though he's advising some informally. He confirmed the studio and The Elder Scrolls Online continue under new leadership.
ZeniMax Online remains operational under studio head Joseph Burba, a 13-year veteran. The Elder Scrolls Online continues receiving updates, with the Gold Road expansion launching in January 2024.
Firor currently advises projects and startups unofficially while investing in small development teams. He hasn't seriously considered starting a new studio, focusing instead on mentorship and investment roles.
Microsoft acquired ZeniMax Media, ZeniMax Online's parent company, in 2021 for $7.5 billion. The acquisition brought multiple Bethesda studios under Xbox Game Studios, including id Software, Arkane Studios, and MachineGames.
Project Blackbird was reportedly described as a cross between Cyberpunk 2077 and Destiny in earlier reports, though later descriptions characterized it as a blend of Destiny, Blade Runner, and Horizon Zero Dawn. Sources told IGN the project was progressing well and nearing full production approval before cancellation.
The cancellation occurred during Microsoft's broader restructuring that eliminated thousands of positions company-wide. Xbox leadership has prioritized profitability and strategic alignment across its expanding game studio portfolio.
Firor's departure marks a significant transition for ZeniMax Online, which he led through The Elder Scrolls Online's decade-long operation. The studio maintains six locations across the United States.
Industry analysts note the cancellation reflects Microsoft's increased scrutiny of development costs and project viability. The company has canceled several unannounced projects since the ZeniMax acquisition to streamline operations.
Former Project Blackbird team members continue developing new projects through independent studios. Their experience with large-scale MMORPG development positions them for future online game ventures.
ZeniMax Online's focus remains on The Elder Scrolls Online, which continues attracting players ten years after launch. The studio's shift from new IP development to sustaining existing titles mirrors broader industry trends toward live service continuity.
