Phil Spencer Raved About ZeniMax’s Cancelled MMO Project Blackbird

ZeniMax Online Studios was significantly impacted after Xbox conducted widespread layoffs. Not only did they lose staff, but their game, Project Blackbird, was also canceled. This news blindsided the team, especially given the highly positive feedback they had received from brand leaders. Bloomberg reported that employees learned of their fate abruptly: they woke up to find their work access revoked. A jarring discovery, to say the least. Jason Schreier revealed that in March 2025, high-ranking Xbox executives, including Phil Spencer, played a demo of Project Blackbird and were reportedly highly impressed. What’s particularly perplexing is that just months after receiving significant praise for their work, the Project Blackbird team learned their game was canceled and they were out of a job. According to Schreier’s sources, when Spencer was playing the demo in March, Matt Booty even had to physically retrieve the controller from him because he was so engrossed in the game, despite needing to attend a meeting.

Project Blackbird was described as a third-person online looter-shooter, featuring a sci-fi noir aesthetic reminiscent of Blade Runner. Players could navigate environments swiftly using dynamic movement abilities such as double jumps, air dashes, grappling hooks, and wall climbing, enabling vertical traversal. The game’s development began somewhat slowly but had recently gained significant momentum, with the team expanding to approximately 300 individuals. Senior Microsoft leadership even reviewed an impressive vertical slice demo in March 2025. Then, abruptly, Project Blackbird was canceled, leaving everyone at ZeniMax Online Studios utterly astonished. Due to the unexplained cancellation of Project Blackbird, Matt Firor, who serves as the director and founder of ZeniMax Online Studios, tendered his resignation.