Former Elder Scrolls Online Director Discusses Microsoft’s Impact on His Dream Game: “A Major Success Didn’t Excite Them”

Microsoft has shelved numerous projects in recent years, but few have captured the imagination like Project Blackbird, an online loot shooter RPG developed by the team behind The Elder Scrolls Online. This ambitious title fell victim to the company’s cost-cutting measures in the summer of 2025, despite former Microsoft Gaming CEO Phil Spencer reportedly being impressed by its early gameplay. Recently, former ZeniMax Online Studios head Matt Firor shared insights about the project and the decision that led to his departure from the company in a new interview.

“Creating games is always a tough business,” he told an outlet. “No matter how great the studio, decisions can impact people’s lives. I didn’t agree with the cancellation, but I understood the financial reasoning behind it. We’re just numbers on a ledger, and when that number is significant, it becomes a target for scrutiny.”

Firor, who has decades of experience in game development since his breakout role as a designer on 2001’s Dark Age of Camelot, noted that substantial investment had gone into a new engine for Project Blackbird. This engine was designed to streamline development, allowing for easier live-service support in the online sci-fi MMO, despite the high initial costs.

Unfortunately, this made the project an attractive target as Microsoft began implementing widespread cuts across its gaming division following the $70 billion acquisition of Activision Blizzard. Firor emphasized that the decision to cancel Project Blackbird didn’t feel personal, highlighting the talented individuals he collaborated with at Xbox.

“A massive, successful game at Microsoft wasn’t particularly exciting for them,” he explained. “They’re looking for a business model with consistent, predictable growth. This isn’t unique to Xbox; it’s a trend across public companies. They want reliable forecasts, and the entertainment industry, including gaming, doesn’t always fit that mold.”

Firor added, “You could point to any major company, like EA in 2008 or Activision in 2004. It’s a business, and it can be harsh. While I don’t agree with some decisions, the financial reasoning is clear on paper.”

Earlier this year, the veteran developer announced on LinkedIn that he had resigned due to the cancellation, a rare move in an industry where talent typically refrains from voicing internal grievances. “It was a pretty devastating blow,” Firor shared. “This was the game I conceptualized and designed. Others took it and improved it significantly, but I’ve been nurturing this idea for a long time.”

He acknowledged that there was still much work needed to complete the game, which likely contributed to Microsoft’s final decision, but he believed it would have been a unique addition to the gaming landscape. “The world would have been better off with that game in it, as far as I’m concerned.”