Elder Scrolls Online Leader Departs Due to Microsoft

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Matt Firor’s Resignation from ZeniMax Over Project Blackbird Cancellation Amid Microsoft’s Gaming Division Shake-up

Matt Firor resigned from ZeniMax Online Studios in July 2025, where he had worked for almost 20 years and spearheaded development of The Elder Scrolls Online. Several months later, Firor cited Microsoft’s actions as the reason for his departure, specifically the cancellation of Project Blackbird. Following layoffs of over 9,000 Microsoft employees in the summer of 2025, its gaming division experienced studio closures and project cancellations. While Microsoft highlighted the continuation of Perfect Dark (developed by The Initiative) and Everwild (developed by Rare), Firor found the cancellation of Project Blackbird particularly troubling. PC Gamer obtained a LinkedIn message in which Firor stated, “Project Blackbird was the game I waited my entire career to create, and seeing it canceled led to my resignation.” Firor praised his ZeniMax colleagues, expressed sadness over the dismissals, and clarified that he is not involved in any projects led by former ZeniMax employees. Currently, he is informally advising new team leaders while considering his future, but he does not seem inclined to open a new video game production studio.

ZeniMax Online Studios Abruptly Loses Project Blackbird to Microsoft’s Unexpected Cancellation

ZeniMax Online Studios began developing Project Blackbird, a new MMO RPG, in July 2018. However, Microsoft unexpectedly canceled the project in July 2025 without prior notice. Employees soon discovered their Slack accounts had been deactivated, leaving them without information about their jobs.

In Case You Missed It

In the dynamic world of gaming, July has been a month filled with significant changes and discussions. First, Jonathan Dubinski explored Microsoft’s cuts that sent shockwaves through the industry, particularly focusing on Project Blackbird’s cancellation and Matt Firor’s departure from Zenimax Studios in his article “ZeniMax Online Workers Union Responds to Microsoft Cuts” (). Then, Dubinski delved into another significant shift with “Xbox: A Historic Shift for This Highly Regarded Studio”, published on July 12th. Here, he examined the recent departures of Gregg Mayles and Louise O’Connor from Rare and the impact of Xbox’s restructuring on projects like Everwild (). Meanwhile, Carlos Mendoza sparked a thought-provoking conversation with his piece “Xbox Game Studios Executive Proposes AI for Laid-Off Workers”, published on July 5th. Matt Turnbull proposed using AI tools to aid career transitions for affected workers, but the proposal isn’t without controversy given Microsoft’s recent project cancellations and AI investments (). It’s certainly an interesting time in the gaming industry, with these articles providing invaluable insights into its latest developments.