Former Elder Scrolls Online Director Exits After Microsoft Scraps His Dream MMO: “The Game I Longed to Create”

Former Elder Scrolls Online director Matt Firor has opened up about his unexpected exit from Zenimax Online, attributing it to Microsoft’s sweeping layoffs and project cancellations, which included his ambitious MMO, Project Blackbird.

In a message shared on Bluesky, Firor mentioned that while he isn’t “directly involved” in any new projects led by former Zenimax Online colleagues, he is providing informal advice to some of them. However, what really piqued interest was his response to a frequently asked question: why did he leave?

“The most obvious explanation is the correct one,” Firor stated. “Project Blackbird was the game I had waited my entire career to create, and having it canceled led to my resignation. My heart and thoughts are always with the impacted team members, many of whom I had worked with for over 20 years, and all of whom were the most dedicated, incredibly talented group of developers in the industry.”

Firor left Zenimax on July 2, 2025, after an 18-year tenure. On that same day, reports surfaced that Project Blackbird, a Destiny-like looter shooter in development since 2018, had fallen victim to Microsoft’s layoffs, which severely affected Xbox and its studios. Other projects, like Rare’s long-troubled Everwild, also faced cancellation.

Xbox head Phil Spencer, a known fan of Destiny, reportedly enjoyed Blackbird so much that he had to be reminded to focus during a meeting, as he couldn’t put the controller down.

Unfortunately, it’s not uncommon for Microsoft to let go of talented individuals for the sake of restructuring, even when they are working on promising games. Adding insult to injury, Spencer claimed during the layoffs that “our platform, hardware, and game roadmap have never looked stronger,” attributing current successes to “tough decisions we’ve made previously.”

As for Firor’s next steps, he admits, “I still haven’t figured that out,” but he’s not completely stepping back from the scene. While he hasn’t seriously considered starting a new development studio, he has made investments in small teams that he believes will significantly impact the industry in the future.

Fellow Zenimax veteran Rich Lambert expressed his enthusiasm for creating a new game, despite the unfortunate end of Blackbird.