Xbox CEO Phil Spencer reportedly couldn’t stop playing ZeniMax’s unannounced game — and now it’s canceled

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In recent news, it has been reported that Microsoft is terminating jobs and suspending game production under Xbox. A new report from Bloomberg sheds an interesting light on one specific cancellation – the MMORPG project, Blackbird, developed by ZeniMax Online Studios.

During a meeting in March, gaming executives at Microsoft were shown a demonstration for Blackbird, an unannounced game. According to those present, Microsoft Gaming CEO Phil Spencer was so engrossed in playing the game that the studios head Matt Booty had to take the controller away from him to continue the meeting. The leadership reportedly had nothing but positive things to say about the game.

Blackbird had been in development since 2018, with a growing team under ZeniMax Online Studios working on it. In March, there were approximately 300 developers working on the project, aiming for a release window of 2028. This team included former staff from Arkane Austin, a studio shut down by Microsoft in May 2024. At the time, Booty explained the shutdown as a move to focus resources on “high-impact titles” that would continue in development.

Bloomberg describes Blackbird as a third-person, science-fiction “looter-shooter,” with an aesthetic reminiscent of films like Blade Runner. Players would have been able to double-jump and use grappling hooks to navigate the game’s tall buildings.

After the cancellation, which came as a surprise to staff, ZeniMax Online Studios may face potential layoffs, but the exact numbers are unclear. The team is unionized, but does not yet have a contract, leaving many staff in limbo during union negotiations for jobs and severance. Anonymous sources speaking with Windows Central attribute the cancellation to Microsoft’s excessive financial expectations, which coincide with the company’s growing focus on AI spending.

No reason given, at all

Overseeing this situation, it seems quite unusual for Microsoft Gaming not to address the potential issues regarding the extended development period, workforce requirements, or progress status of their recently cancelled projects – like Everwild from Rare and the Perfect Dark reboot by The Initiative. I find myself questioning why these concerns weren’t brought up during this meeting.

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2025-07-04 02:09