Who Is the Ex-Elder Scrolls Online Boss Behind Microsoft’s Canceled Dream Game?
Matt Firoris the longtime MMO developer in question. He led ZeniMax Online Studios, the team behindThe Elder Scrolls Online(ESO): for nearly two decades. Firor first rose to prominence as a designer on the 2001 MMORPGDark Age of Camelot. As ZeniMax’s studio head, he oversaw ESO’s development and conceived a brand-new MMORPG, Project Blackbird. After Microsoft’s Xbox division canceled Blackbird, Firor announced his resignation in mid-2025. (He confirmed he left specifically because Blackbird was killed.)
What Was the Canceled Microsoft MMO Project Blackbird?
The Elder Scrolls Online (shown here during its 2021 Blackwood expansion) has been running for over a decade. In addition to supporting ESO, ZeniMax Online was secretly developing a new MMO codenamed Project Blackbird. Launched into development around 2018 with a custom-built engine, Blackbird was envisioned as a futuristic, sci-fi online RPG/looter-shooter. Reportedly, it was a third-person, online loot-shooter set in a new universe – not connected to the Elder Scrolls or Fallout IPs.
Early descriptions likened it to a cross between Cyberpunk 2077 and Destiny. By early 2025 about 300 developers were working on it. Internally it had received very positive feedback, with some executives “raving” about it, and even Xbox CEO Phil Spencer was said to have enjoyed playing early builds. In sum, Blackbird was a big-budget new AAA MMO, poised to be ZeniMax’s next flagship online game.
How Project Blackbird Was Aiming to Change the MMO Genre
Project Blackbird was designed to innovate on traditional MMO models. Firor explained that ZeniMax invested heavily in a bespoke engineto support it, an upfront expense intended to make ongoing development more efficient. He said the new engine would let developers “create and adjust content more rapidly,” enabling a more agile live-service pipeline. In effect, Blackbird was meant to allow a smaller team to update the game more often without constant large expenditures.
Early comments from Firor suggest the gameplay itself was very different from standard fantasy MMOs. He described Blackbird as “a hell of a lot of fun and much different than anything else out there”. (One report even calls it a “Destiny-style MMO shooter” blending RPG and shooter elements.) The goal was to bring fresh AAA shooter mechanics into the MMORPG space, essentially a new, high-profile online world rather than another expansion of existing franchises.
Matt Firor’s Full Statement on Microsoft Killing His MMO Vision
Firor spoke frankly on LinkedIn about losing Blackbird. He wrote: “Project Blackbird was the game I had waited my entire career to create, and having it canceled led to my resignation.”. In other words, Blackbird was his dream project, and its death prompted his exit. He added that his “heart and thoughts” remained with the impact on the team, calling them “the most dedicated, amazingly talented group of developers” he had worked with. (Firor also thanked the ESO team and community, noting he still enjoys playing ESO “as an anonymous community member,” which underscores the personal toll of the cancellation.) These comments make it clear that Firor viewed Blackbird’s scrapping as a profound loss for him and his colleagues.
Why Microsoft Shut Down the Ex-Elder Scrolls Online Director’s Dream Game
According to Firor, the decision was purely financial. He said he didn’t “feel [the decision] was personal” rather, “it is just financial”. In practice, Blackbird showed up in Microsoft’s books as a large expense. Firor put it bluntly:“We’re a number on a ledger, and if that number is large, it is ripe for analysis… and that number was always large.”.
In other words, Blackbird’s high development cost (from its custom engine and big team) made it a prime target when Xbox leaders reviewed budgets. Windows Central reports that the game’s “high upfront cost made it a glaring target for Microsoft” as it began seeking cuts after the $69–70 billionActivision-Blizzard deal. Put simply, Xbox executives scrapped Blackbird to reduce spending, it was essentially an expensive line item on Microsoft’s balance sheet that they chose to remove.
The Real Reason Xbox Cancelled a “Giant Successful Video Game” Project
Firor highlighted that on Microsoft’s scale, even a “giant successful” game isn’t enough if it doesn’t fit the financial strategy. He said a big game like Blackbird was “frankly not that stimulating” to Xbox leadership. The reason: Microsoft was looking for projects with reliable, predictablereturns. As Firor put it, they “want a business that… has numbers that go up reliably every year”.
The video game industry, by contrast, is volatile, some years a hit brings in big revenue, other years it may not. Because Blackbird couldn’t promise strictly linear annual growth, its hefty budget made it seem too risky. In effect, the “real” reason was that Microsoft’s investors prefer steady growth. Firor noted the analogy of other big mergers (e.g. EA’s 2008 cuts), saying “it’s a business, and it’s terrible sometimes,” meaning even a quality game can be chopped if the numbers don’t add up.
Microsoft’s Gaming Strategy Explained by the ESO Veteran
Firor’s remarks illuminate Xbox’s broader game strategy. He explained that Microsoft has shifted focus toward safe, long-term profitability. New Xbox boss Asha Sharma emphasized similar goals in 2025, and Firor himself reflected that Xbox teams want “a business…where revenue goes up and to the right”.
This means franchises like sports games or persistent multiplayer titles (which can be updated yearly) are favored. By contrast, risky, one-time-budget games like Blackbird, which might have uneven sales, are less appealing. Firor even cited prior examples, “EA 2008” or “Activision 2004”, to show such corporate caution has happened before. In short, from an Xbox veteran’s perspective, the strategy is investor-driven: develop titles with dependable financial performance, even if that means shelving exciting but unpredictable projects.
Why Xbox Prefers Predictable Revenue Over Experimental AAA Games
At a higher level, Firor made clear that Xbox (as a public company division) privileges predictability. He noted that big blockbuster games tend to have spiky sales huge opening weeks but uncertain follow-ons whereas Microsoft wants games whose subscriptions or player counts climb steadily. He summed this up:“They want a business…numbers that go up reliably every year by a certain amount.”. Because of this, experimental AAA projects (even successful ones) can be deemed too volatile. Firor characterized the situation as “heartbreaking,” but understandable: a company must consider shareholders. This explains why Microsoft would cancel a completed, highly promising game; it simply didn’t fit their target of continuous, annual growth.
Microsoft Layoffs 2025: Impact on Game Development Studios
Blackbird’s cancellation occurred amid a much larger round of Xbox cuts. In mid-2025, Microsoft announced sweeping layoffs across its gaming division, affecting thousands of jobs. Many first-party projects were axed. Notably, Xbox shuttered other high-profile games at the same time: Rare’s Everwild was cancelled, and Perfect Dark an upcoming title from The Initiative was also scrapped (The Initiative studio was closed). These examples show how broad the impact was. In summary, Microsoft’s 2025 restructuring saw multiple studios tighten their belts: from internal layoffs to project cancellations, the cost-cutting wave hit nearly every corner of Xbox Game Studios.
- Rare’s Everwild – cancelled.
- The Initiative’s Perfect Dark – cancelled (studio closed).
The Hidden Cost of Big-Tech Acquisitions in Gaming Industry
Firor’s account highlights a risky side of mega-mergers in gaming. When Microsoft paid roughly $70 billion for Activision-Blizzard, it triggered intense scrutiny of all investments. Big acquisitions raise pressure on executives to deliver quick returns, which often means cutting what aren’t seen as core priorities.
In this case, Blackbird’s high budget and uncertain revenue became a casualty of that post-merger financial climate. As Firor put it, the game was treated as “just financial” essentially a line on a spreadsheet. The “hidden cost” is that creative projects can be sacrificed to satisfy corporate bottom lines. Even if a new game shows promise, it might be killed if shareholders demand tighter margins after a large acquisition.
Why “Successful Games” Still Get Canceled at Xbox Studios
The Blackbird story shows that even well-regarded projects aren’t immune. Reports suggest Blackbird was “doing well and even scaling up” when it was abruptly axed. Yet success in development or test reviews wasn’t enough to save it. Similarly, other celebrated titles (like Everwild or Perfect Dark) were cancelled at Xbox despite fan interest. The lesson is that corporate metrics can override traditional notions of a “successful” game. If a title’s financial forecast doesn’t meet the new criteria, even a great game may get cut. Thus, from the studios’ view, creativity and potential must also align with Microsoft’s conservative business model.
Inside the ZeniMax Online Studios Cancellation and Fallout
Inside ZeniMax Online, Blackbird’s cancellation led to upheaval. Apart from Firor’s exit, several developers lost jobs and sought new paths. Notably, some of the laid-off Blackbird team quickly formed a new independent studio called Sackbird. PC Gamer reports the 10 founders of Sackbird include former Blackbird developers as well as “former leads and key contributors” from ESO. Their CEO Lee Ridout said the team left AAA in order “to take smart risks” and maintain “creative control”. In short, Blackbird’s shutdown prompted a talent exodus: many veterans chose to depart rather than continue under Xbox’s new cost-first regime.
How the Elder Scrolls Online Team Reacted to the MMO Shutdown
No public statement came from ZeniMax Online about Blackbird’s demise, but Firor’s own comments reflect the team’s likely sentiments. He described the cancellation as “a pretty devastating blow” after many years of work on the project. In his LinkedIn farewell, Firor made a point of thanking the ESO development team and community. He praised them as “the most welcoming, best community in online gaming” and said he has joined them as “an anonymous community member” enjoying ESO again. This suggests respect and camaraderie remained. In essence, while the devs were undoubtedly hurt by losing Blackbird, they continued focusing on ESO, supported each other, and Firor publicly expressed his gratitude and solidarity with them.
What the Cancellation of Project Blackbird Means for MMO Fans
For MMO fans, Blackbird’s cancellation is discouraging news. It means one fewer big-budget new MMO on the horizon. As a would-be “giant” new online world, Blackbird was highly anticipated by genre enthusiasts. Firor himself lamented that “the world probably would have been a better place with that game in it”. With its demise, players must look to existing titles or indie projects for new MMO experiences. The event also signals to fans that even high-profile, veteran-led MMOs can be unexpectedly cancelled if they fail corporate tests. In practice, the ESO team continues working on expansions (Blackwood, etc.), but hopes for a fresh AAA MMO from this studio will have to wait or be taken up by other companies.
Future of ZeniMax Online After the@Dream Game Was Scrapped
With Blackbird gone, ZeniMax Online’s immediate future largely revolves around ESO, its decade-old cash cow. The studio is expected to keep supporting ESO with new content. There are no announced new MMOs in the pipeline.
Key team members have moved on: as noted, Sackbird’s founders include former ESO leads and Blackbird devs. Firor himself is now working “in an unofficial capacity” advising new projects and startups, and has said he hasn’t planned a new company of his own yet. In summary, ZeniMax Online will likely remain focused on ESO; its capacity to create another entirely new franchise appears reduced, given the talent departures. The “dream game” may be over, but the studio lives on in ESO and wherever its alumni go next.
Frequently Asked Questions (FAQs)
- Who is Matt Firor?
He is the former head of ZeniMax Online Studios (the developer of The Elder Scrolls Online). A veteran MMO designer, he worked on Dark Age of Camelot and later ran ESO. Firor left the company after Blackbird’s cancellation. - What was Project Blackbird?
It was an unannounced, new MMO in development at ZeniMax Online. Blackbird was described as a sci-fi online shooter/RPG built on a custom engine. Development began around 2018, and by 2025 some 300 people were working on it. Internally it was likened to a mix of Cyberpunk 2077 and Destiny. - Why did Microsoft cancel Project Blackbird?
Firor says it was purely financial. Blackbird’s development costs were huge, making it “a number on a ledger” that management cut. Microsoft’s post-Activision focus on cost-cutting meant even promising games got axed if they weren’t guaranteed steady growth. - Did Phil Spencer like the game?
Yes. Reports indicated that Xbox execs (including Phil Spencer) loved what they saw of Blackbird. Kotaku notes Spencer “reportedly had loved what he played of it”. However, even this enthusiasm couldn’t override the financial decision. - What other projects were affected by Microsoft’s 2025 layoffs?
Several big titles were cancelled or put on hold. Most notably, Rare’s Everwild and Perfect Dark (the new game from The Initiative) were both cancelled. The Initiative studio itself was closed as part of those cuts. These show that Blackbird’s fate was part of a much larger Xbox restructuring. - What happened to the developers after Blackbird was cancelled?
Many left ZeniMax Online. Some formed new studios for example, several Blackbird devs (including ex-ESO leads) started the independent Sackbird Studios with no outside investors. Others may have moved to different Xbox teams or taken up roles in indie and startup projects. - Will Project Blackbird ever be revived?
There are no current plans to revive it. Microsoft has officially shelved the project. Given the financial reasons behind its cancellation, a resurrection is unlikely unless another company (or an independent team) adopts the idea in a new form. - How large was the Blackbird development team?
It became quite large for a studio project. Windows Central reports it grew to about 200 developers by 2022 and 300 by early 2025. This significant investment in manpower was part of why it ended up costing so much. - Was Blackbird anywhere close to release?
Not really. It was still in pre-production and prototype phases. According to Firor, “there was still a lot of work to be done to finish the game” when it was cancelled. Early gameplay existed (some footage has surfaced online), but it wasn’t near a release date. - How did the Elder Scrolls Online community react?
The ESO community wasn’t directly involved, since Blackbird was secret. However, when news broke, many players expressed disappointment on forums and social media. Firor himself publicly thanked the ESO community for their support and said he was still an “anonymous community member” of ESO. ESO continues unaffected by Blackbird’s fate, with new expansions planned.
Conclusion
Project Blackbird’s cancellation underscores the tension between creative ambition and corporate strategy in the current gaming industry. Despite being a beloved project by its creator and even by Xbox leadership, Blackbird was ultimately sacrificed to meet financial targets and shareholder expectations.
Matt Firor’s comments make it clear that, to Microsoft’s executives, a game’s quality or innovation must align with strict revenue growth. For the developer and fan community, the episode is a stark reminder that “something left of Ashes” (even highly anticipated and carefully built games) can be cut if they don’t fit on the financial ledger. As the dust settles, ZeniMax Online continues ESO support, former Blackbird developers strike out on their own (like with Sackbird Studios), and MMO fans will keep watching the market for the next big online adventure.
Sources and Citations
- GameSpot – Microsoft Killed MMO Project Blackbird Because It Was A Line Item On A Ledger
- Windows Central – Ex-The Elder Scrolls Online director reflects on Xbox canceling Project Blackbird MMO
- PC Gamer – A new MMO in development at ZeniMax Online canceled amid Xbox layoffs
- PC Gamer – Former ESO boss talks about Project Blackbird cancellation impact
- GameSpot – Apparent Project Blackbird footage and development details
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