Some video footage from Project Blackbirda canceled online multiplayer title from Microsoftwas posted on social media almost six months after it went away. Project Blackbird was managed by Microsoft subsidiary Zenimax Online Studios, the creators of The Elder Scrolls Onlineuntil the tech giant called for it to be cancelled.
Having been in development since 2018, Project Blackbird is said to be an MMO third-person shooter and action RPG that took inspiration from other space-based titles such as Warframe and Destiny 2. Although very little was known about Project Blackbird during its active development, former Zenimax Online server engineer Eric Whelpley received praise for the game. Whelpley said so Project Blackbird was “quite spectacular” and that “the game would have delighted” players if it was allowed to finish development and make it to a full release.
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Unfortunately, Project Blackbird was discontinued by Microsoft along with other games such as Perfectly dark remake and Everwild. Despite the cancellation, some internal pictures of Project Blackbird was posted on Twitter by eXtas1stv. While it's unclear how the two-minute video was obtained, it was intended to be a demonstration of the game's lighting system. The film from Project Blackbird took place in a dark, futuristic setting, with armed soldiers talking to alien characters that could be seen throughout the video. Although no character animations were shown in the leaked images, some neon signs and a railway carriage system were also shown. Residual moisture from the city fog was also visible on the windows of some buildings, and soft shadows were cast from the various characters on the dark pavement. It is not known what the game engine was used for Project Blackbirds development.
Despite the lack of gameplay animations, the lighting demos were a good indicator that Project Blackbird was still deep in its development cycle before Microsoft pulled the plug. In short, Project Blackbird was one of the victims of Microsoft's July 2025 layoffs, with about 9,000 jobs lost after smaller job losses in May and June. The mass layoffs affected Xbox Game Studios and its subsidiaries, including Zenimax Online Studios, across the board. Zenimax Online founder Matt Firor also left the company days after Project Blackbird was interrupted. In late July, Microsoft CEO Satya Nadella stated that the company was “thriving” despite its controversial decisions. The tech giant's push towards using AI to replace some employees was seen as a potential factor behind its cuts.
Project Blackbird's cancellation is still pending
After the abrupt end of Project Blackbirds development, rumors about the driving forces behind its demise circulated on social media. A rumor suggested it Fallout 5 was a driving factor behind cutting Project Blackbird. According to gaming industry insider Jez Corden, Microsoft had chosen to make strategic moves towards other areas, including reallocating resources to known IPs such as Fall-out. Although unlikely Fallout 5 was the main cause of Project Blackbirds cancellation, it potentially played a significant role in Microsoft's decision.
However, Microsoft may still be facing a tough 2026. Although some rumors said the tech giant could still make further job cuts at the beginning of the year, Microsoft COO Frank X. Shaw dismissed the claims of impending layoffs, calling the rumors “false” and “speculative” on social media. However, it's not clear if Shaw's statements were just about Xbox Game Studios being unaffected by future cuts, or if it extended across the entire company. With the video off Project Blackbirds development now available on social media, time will tell if footage from other canceled Microsoft game projects will ever surface.
Source: Insider Gaming
