Project Blackbird Cancellation Details

Project Blackbird Cancellation Details

Former ESO director Matt Firor explains how the cancellation of Project Blackbird led to his exit from Microsoft and affected veteran Zenimax developers.

Eliza Crichton-Stuart

Eliza Crichton-Stuart

Updated Jan 3, 2026

Project Blackbird Cancellation Details

Matt Firor, the former director of Elder Scrolls Online and founder of Zenimax Online, has publicly discussed his departure from Microsoft following the cancellation of the online multiplayer game Project Blackbird. Firor, who established Zenimax Online in 2007, guided Elder Scrolls Online into one of the most recognized MMORPGs and left the studio abruptly last summer amid a series of layoffs.

In a LinkedIn post shared on January 1, Firor addressed the reasons behind his exit without directly naming Microsoft. “Project Blackbird was the game I had waited my entire career to create, and having it canceled led to my resignation,” he wrote. He also expressed concern for his former colleagues, many of whom he had worked with for more than 20 years. “My heart and thoughts are always with the impacted team members… all of whom were the most dedicated, amazingly talented group of developers in the industry,” he added.

Project Blackbird: An Ambitious Multiplayer Experiment

Project Blackbird was described as a loot shooter combining elements of games like Destiny and Blade Runner with MMORPG-style questlines. Reports indicate that Microsoft Gaming CEO Phil Spencer had played an early build of the game and responded positively, highlighting the puzzling nature of its cancellation. The decision came as Xbox studios faced internal targets requiring a 30-percent profit margin while ensuring all titles were accessible on Game Pass.

The cancellation of Project Blackbird affected not only Firor but also many veteran developers at Zenimax Online. Some of these developers have since formed Sackbird Studios, an independent team focused on character-driven multiplayer experiences with full creative control, free from corporate oversight.

Impact on the Gaming Community and Web3 Development

The departure of high-profile developers and cancellation of large-scale projects like Project Blackbird reflects broader challenges in the gaming industry, particularly around balancing creative ambitions with financial targets. It also comes amid increasing interest in integrating web3 technologies into gaming ecosystems, with independent studios exploring ways to provide player-driven experiences that leverage blockchain elements for ownership and in-game economies.

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Frequently Asked Questions (FAQs)

Why did Matt Firor leave Microsoft?
Matt Firor left Microsoft following the cancellation of Project Blackbird, an online multiplayer game he had been developing at Zenimax Online. The project’s cancellation was a significant factor in his decision.

What was Project Blackbird?
Project Blackbird was an online multiplayer loot shooter blending elements of Destiny and Blade Runner with MMORPG-style questlines. It was considered ambitious and received early positive feedback from Microsoft Gaming leadership.

What happened to Zenimax Online developers after the layoffs?
Many former Zenimax Online developers were impacted by layoffs and the cancellation of Project Blackbird. Some have since formed Sackbird Studios, an independent studio focusing on multiplayer games with full creative freedom.

How does this relate to web3 in gaming?
The cancellation of large corporate-backed projects has led some developers to explore independent models, including web3 technologies, to offer player-driven experiences, blockchain-based ownership, and decentralized in-game economies.

Will Project Blackbird ever be revived?
As of now, there is no indication that Project Blackbird will be revived. Former team members are focusing on new projects through independent studios like Sackbird Studios.

Game Updates

updated

January 3rd 2026

posted

January 3rd 2026

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