New Bethesda MMO Cancellation Takes a Heartbreaking Turn

In 2025, Microsoft made the decision to cancel a highly anticipated title from ZeniMax Online Studios, leading to the resignation of studio head Matt Firor. In a LinkedIn post, Firor indicated that the simplest explanation for his departure was the most accurate one. He expressed that the project, known as Project Blackbird, was “the game I had waited my entire career to create,” and its cancellation prompted his exit. He shared his heartfelt thoughts for the affected team members, many of whom he had collaborated with for over two decades, praising them as an incredibly dedicated and talented group of developers.

While Firor did not provide further details about Project Blackbird, reports suggest it had been in development since 2018 and was envisioned as a blend of Cyberpunk 2077 and Destiny. Following the game’s cancellation and subsequent layoffs at the studio, some former employees launched new ventures, including the employee-owned Sackbird Studios. CEO Lee Ridout mentioned that after years in AAA gaming, they sought the freedom to take calculated risks without the constraints of waiting for approvals or meeting quarterly goals.

After spending more than 18 years at ZeniMax, Firor is now involved in advising various projects and start-ups, as noted in his LinkedIn update. He also mentioned making investments in smaller teams. Although there has been speculation about him starting a new studio, he clarified that he has “not yet seriously contemplated” this direction. The cancellation of Project Blackbird was part of broader cutbacks at Xbox, which also saw the cancellation of Rare’s Everwild and the closure of The Initiative, the studio behind the new Perfect Dark.