Canceled MMORPG from TES Online Creators Left Phil Spencer So Impressed He Couldn't Put the Controller Down

Bloomberg journalist Jason Schreier has revealed new details about Blackbird, the now-canceled MMORPG from ZeniMax Online Studios, the team behind The Elder Scrolls Online. Despite strong internal support from Xbox leadership, the project was ultimately scrapped.

According to Schreier, Blackbird played similarly to Destiny, featuring a noir sci-fi setting reminiscent of Blade Runner. The game leaned toward the looter-shooter genre, with a heavy emphasis on vertical gameplay—players could use grappling hooks, double jumps, and parkour mechanics. Schreier described the vertical slice footage he viewed as genuinely impressive.

A demo shown in March reportedly left Xbox leadership highly enthusiastic. Phil Spencer, Head of Xbox, was so engrossed in the gameplay that others in the room had to take the controller from him to proceed with the meeting. All signs pointed toward Blackbird moving into full production as a major new title.

However, on July 2, the game was abruptly canceled with no clear explanation. According to sources, the team was not given advance notice—both the creative director and executive producer reportedly had their corporate access revoked without warning. Following the announcement, ZeniMax Online Studios founder and president Matt Firor submitted his resignation.

This cancellation comes amid Microsoft’s latest wave of layoffs, which affected several high-profile studios including Raven Software, Turn 10 Studios, Undead Labs, and MachineGames. A total of 9,000 employees were laid off, and other projects like Perfect Dark and Everwild were also shuttered.