Microsoft has once again stirred concern across the gaming industry after initiating another wave of layoffs—this time impacting 9,000 employees, including teams within its Xbox division. Among the casualties is Blackbird, a long-in-development, unannounced MMO project led by ZeniMax Online Studios, the same team behind Elder Scrolls Online.
Blackbird was reportedly a third-person sci-fi shooter with heavy MMO elements, inspired by games like Destiny. Development began in 2018 and the game was said to emphasize movement and verticality, offering mechanics such as grappling hooks, wall-running, and air-dashes to support fast-paced traversal. The project had grown to a team of around 300 people.
Ironically, insiders say the game had received high praise from Xbox leadership. CEO of Microsoft Gaming, Phil Spencer, was reportedly so captivated by a March 2024 demo that he had to be pulled away to make time for a meeting. Despite internal excitement, the project has now been shelved indefinitely, with developers informed of its cancellation during a recent meeting.
The news comes during a turbulent time for Microsoft’s gaming division, despite the company posting record profits and the Xbox brand boasting increased player engagement. The layoffs, however, signal a shift in strategy: even well-received projects are not immune if they don’t align with Microsoft’s evolving financial and structural priorities.
Affected developers expressed frustration, not just over the cancellation, but over the manner of its execution. Some staff discovered they were let go when their access to internal tools like Slack was abruptly revoked. Negotiations are ongoing with ZeniMax’s newly formed workers’ union regarding severance and future employment options.
This development underscores a larger industry concern: studio closures and talent cuts are becoming increasingly common—even at a time when gaming revenue continues to grow. As Microsoft focuses on maximizing returns from its $69 billion Activision Blizzard acquisition, projects like Blackbird appear to be the unfortunate collateral.
Leave a Reply