Microsoft's big purge: ambitious MMORPG Blackbird from the creators of The Elder Scrolls Online has been cancelled

By: Anton Kratiuk | 02.07.2025, 21:04

Surprising details continue to emerge regarding the announced wave of layoffs in Microsoft's gaming divisions and the subsequent cancellation of major projects.

Here's What We Know

We already reported that the American corporation cancelled the development of the ambitious Perfect Dark reboot and is closing The Initiative studio, which was responsible for the spy action game.

Reputable journalist and insider Jason Schreier reported another high-profile cancellation. It turns out that employees of Zenimax Online Studios - authors of the popular multiplayer role-playing game The Elder Scrolls Online - were working on a major project in a similar genre.

The game, codenamed Blackbird, has been in development since 2018 and obviously, significant resources have been spent on it. But as part of a shift in priorities and cost-cutting, Microsoft decided not to continue working on it.

According to Schreier, details about the game itself and its cancellation should be coming soon.

BREAKING: The new MMORPG project from Zenimax Online Studios, maker of Elder Scrolls Online, has been cancelled as part of the Xbox layoffs, sources tell Bloomberg News. The project, code-named Blackbird, had been in development since 2018. Still more news to come this morning.

- Jason Schreier(@jasonschreier.bsky.social) July 2, 2025 at 6:05 pm

Source:@jasonschreier.bsky.social