Former Elder Scrolls Online Director Speaks Out on Game Cancellation That Led to His Departure from Microsoft

Matt Firor established Zenimax Online in 2007 and played a key role in developing The Elder Scrolls Online into one of the top MMORPGs available. He left the company unexpectedly last summer when Microsoft laid off numerous staff at the studio during a broader restructuring and canceled the online multiplayer project he was leading, known as Project Blackbird. Recently, he opened up about his departure, confirming what many fans had speculated.

“Project Blackbird was the game I had waited my entire career to create, and having it canceled led to my resignation,” Firor shared in a January 1 post on LinkedIn, which he later cross-posted on Bluesky. “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.”

In his message, Firor didn’t directly mention Microsoft or criticize the Xbox leadership, which acquired Zenimax Online in 2021, but the decision clearly left many seasoned developers feeling disheartened. Some of Firor’s former colleagues went on to establish Sackbird Studios, aiming to create their own multiplayer game. “With internal funding and full creative control, the studio is focused on crafting bold, character-driven experiences free from corporate compromises,” they stated last year.

Reports indicated that Blackbird was an ambitious loot shooter that combined elements of Destiny and Blade Runner with the structure and questlines typical of MMORPGs. Microsoft Gaming CEO Phil Spencer reportedly played a build of the game last March and was impressed, making its eventual cancellation all the more puzzling. The layoffs and budget cuts occurred as Xbox game studios were said to be under pressure to meet a controversial 30-percent profit margin while also making all their games available for free on Game Pass.