It appears that a new MMO, initially conceived by Elder Scrolls Online developers, was supposedly set in a sci-fi noir universe where players could traverse tall buildings using grappling lines, perform aerial jumps while shooting and looting. You might call it Blade Runner Spider-Man, Destiny 2077, or something else entirely, but unfortunately, due to broader layoffs at the Microsoft-owned company that generated massive profits recently, this project has been scrapped, despite the decision to let go of thousands of employees in the name of “discipline” and “ongoing success.
The report being referred to here comes from Bloomberg and features an overview by Jason Schreier on the final stages of the Blackbird project. Originally known as Kestrel, this project has been in development since 2018 and is a third-person shooter that integrates looting elements with a focus on vertical movement, including grapples, double-jumps, aerial dashes, and wall-climbing.
According to the information from Bloomberg, ZeniMax Online Studios intended for this game to launch a “new franchise”, operating alongside Elder Scrolls Online, which has experienced its ups and downs but is currently a significant success, generating approximately $2 billion in total revenue by 2024.
By March of this year, it is reported that the development team grew to include 300 individuals. Xbox leaders Phil Spencer and Matt Booty allegedly expressed enthusiasm after experiencing a demo in March 2025. However, this optimism was short-lived. As per Bloomberg’s sources, employees were taken aback when they learned this week that the head of ZeniMax Online Studios, Matt Firor, had departed from the company. Furthermore, project Blackbird has been indefinitely postponed.
Numerous employees are currently at risk of being let go, depending on the negotiation process between Microsoft and their union regarding aspects like severance deals. A Microsoft representative has verified this to Bloomberg, stating “the employees we represent are waiting for information about these potential effects and subsequent actions, which are contingent upon negotiations with the union”.
As a gamer, I find Microsoft’s latest layoffs this week a mind-boggling prank of epic proportions. However, I can sense a few reasons behind these decisions from the executive perspective. Maintaining live service games is becoming more and more expensive, with fierce competition making each game release riskier than ever. Journalist Jason Schreier also hints at an intricate challenge within ZeniMax Online Studios: they were reportedly developing the game’s engine technology alongside the actual game development process – a feat that, from my perspective as a gaming enthusiast, seems like attempting to juggle two fiery torches without dropping either.
Even if we take Bloomberg’s report as accurate, the essential point is that the executive suite found it appealing, and Microsoft appears to have a surplus of funds at present. I wish good fortune to all those involved.
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2025-07-04 16:55