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Cancellation Of New Bethesda MMO Just Got An Even Sadder Twist

January 6, 2026
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In 2025, Microsoft canceled an upcoming title at The Elder Scrolls Online developer ZeniMax Online Studios, and it has now come to light that studio boss Matt Firor resigned because of this.

He said in a post on LinkedIn that when it comes to him leaving the studio, “the most obvious explanation is the correct one.”

The game, which was in the works under the working title Project Blackbird, was “the game I had waited my entire career to create, and having it canceled led to my resignation,” he said.

“My heart and thoughts are always with the impacted team members, many of whom I had worked 20+ years with, and all of whom were the most dedicated, amazingly talented group of developers in the industry,” he said.

Firor did not elaborate any further on Project Blackbird. A report said it had been in some stage of development since 2018 and that it might have been a cross between Cyberpunk 2077 and Destiny.

Following the game’s cancellation and layoffs at the studio, some affected workers started new studios, including the employee-owned Sackbird Studios.

“After years in AAA, we wanted the freedom to take smart risks without waiting for a greenlight or chasing quarterly targets,” CEO Lee Ridout said about the formation of the new studio.

After working at ZeniMax for 18+ years, Firor is now “advising some projects and start-ups,” he wrote on LinkedIn. He also said he has “made some investments in small teams….” Some have wondered if Firor may start a new studio, but he said he has “not yet seriously contemplated” this.

The cancellation of Project Blackbird came as part of wider cuts at Xbox. Rare’s Everwild was also canceled, as was the new Perfect Dark from The Initiative–the studio was also closed.

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