Microsoft’s recent mass layoffs have hit the gaming industry hard, and one of the most shocking casualties was an unannounced sci-fi MMO from ZeniMax Online Studios, codenamed ‘Blackbird.’ Despite the promising early stages of the project, sources reveal that the game’s development was cut short amid the layoffs, which affected hundreds of staff at the Maryland-based studio.
The MMO, which had been in development since 2018, was aiming to use a custom-built game engine and had made considerable progress in its pre-production phase. 
As sources tell it, the project was scaling up as recently as last year, with plans to move into full production. In fact, Xbox had given the green light for additional staff to join the project, including personnel from other teams like ‘The Elder Scrolls Online.’ But despite this promising momentum, the entire Blackbird team was laid off following the cancelation of the game.
This move comes after Xbox made several strategic closures, such as the shuttering of Arkane Austin and the controversial cancellation of ‘Perfect Dark.’ It raises questions about Microsoft’s direction with its gaming acquisitions, especially considering their ownership of major titles like ‘World of Warcraft’ and ‘The Elder Scrolls Online.’ The canceled project and layoffs have sparked discussions about the sustainability of Game Pass, with some speculating whether Microsoft is stretching its resources too thin by trying to support multiple subscription-based MMORPGs.
The news also revealed the difficult circumstances surrounding the layoffs, with sources indicating that many employees found out they were impacted through reports or Slack access deactivation before official communication from HR. The sense of confusion and distress among staff has been widespread.
With the MMO landscape already crowded, it seems Microsoft’s cancellation of Blackbird might be a strategic move to streamline its resources. However, it leaves many wondering if the gaming giant can continue its acquisition spree without biting off more than it can chew.