Microsoft's January 2025 layoff wave claimed Project Blackbird, an action-RPG MMO from ZeniMax Online Studios, the team behind The Elder Scrolls Online. Bloomberg's Jason Schreier reports the canceled title could have filled the void left by Destiny 2's decline and Bungie's pivot to new projects.
Project Blackbird reportedly blended Destiny 2's core gameplay loop with Cyberpunk 2077's aesthetic and world-building. The game was in active development by a seasoned live-service studio with years of MMO experience managing a playerbase. Schreier's assessment suggests Microsoft may have eliminated a project with genuine commercial legs during cost-cutting measures that also targeted other studios under Xbox's umbrella.
The timing compounds the loss. Bungie announced Destiny 2 entering maintenance mode after a decade of support, leaving the looter-shooter space without a clear successor. Activision's Diablo Immortal never captured the audience. No major publisher has launched a competitive alternative. Project Blackbird positioned itself directly into that gap, leveraging ZeniMax's infrastructure from ESO, which still operates profitably with a stable playerbase after thirteen years.
Microsoft's decision reflects broader studio restructuring that eliminated thousands of jobs across gaming divisions. The company prioritized other initiatives, leaving Project Blackbird unfinished. For ZeniMax, the cancellation stalls expansion beyond ESO into new IP within the live-service space.
Insiders close to the project apparently viewed Blackbird's prospects favorably, suggesting it cleared internal hurdles and progressed beyond early experimental phases. Whether it truly would have succeeded remains unknowable. Bungie's Destiny franchise required constant investment and course-correction to maintain relevance. A new entrant faces identical challenges.
Still, the cancellation highlights Microsoft's risk-a