Seven years of work and hundreds of millions of dollars seemingly wasted? Microsoft’s willingness to make drastic cuts, even at a staggering cost, is once again in the spotlight. The cancellation of the ambitious project, known as Blackbird (or Project Blackbird), last year marked a significant setback for Xbox, particularly given the seven years invested in developing this new MMORPG.
Estimates suggest the project’s budget reached an astronomical $400 million, potentially making it one of the most expensive video game projects in history. This figure first surfaced through a LinkedIn profile, where Ben Jones, former Game Director at ZeniMax Online Studio, mentioned experience leading projects of a “$400 million hit” scale. Further analysis of Jones’ 25-year career confirmed that Blackbird was the only project of that magnitude he had overseen, suggesting the figure represented the planned budget for the entire production, with the seven years of development likely accounting for the majority of those funds.
While official explanations for the cancellation centered around broader layoffs at Microsoft, reports indicate a strategic shift may have been at play. Sources suggest Microsoft may have decided to halt Blackbird’s development to free up resources and manpower for the highly anticipated Fallout 5.
The cancellation of Blackbird occurred amidst a wave of project shutdowns at Xbox, including the adventure game Everwild from Rare, which had been in development since 2014, and a reboot of the Perfect Dark first-person shooter. This decision highlights a period of restructuring within Microsoft’s gaming division, resulting in approximately 9,100 reported layoffs across the Xbox ecosystem, as reported by TheGamer.
What Was Project Blackbird?
Blackbird, developed by ZeniMax Online Studios – the team behind The Elder Scrolls Online and Fallout 76 – was envisioned as a sci-fi looter-shooter, aiming to rival the Destiny franchise. According to reports, the game featured third-person combat, co-op progression, and a new alien noir-themed universe. Gameplay mechanics were to include advanced movement abilities such as double-jumping, air-dashing, a grappling hook, and wall climbing, as detailed in Engadget.
The project reportedly gained momentum recently, with the studio expanding its team to 300 people and a planned release date of 2028. Xbox executives were reportedly impressed with the game, with sources telling Bloomberg that they were “blown away” and had “nothing but complimentary words.” Even Xbox boss Phil Spencer was reportedly captivated by an early build, to the point where Xbox President Matt Booty had to interrupt a studio visit to get the meeting back on track, as reported by Dexerto.
The Fallout of Cancellation
The cancellation of Blackbird wasn’t without its consequences. Matt Firor, the founder of ZeniMax Online Studios and the game director for Blackbird, resigned following the decision, as noted in The Escapist. Firor’s departure underscores the significant impact the project’s demise had on the studio and its leadership.
Microsoft has not publicly provided a detailed explanation for the cancellation, beyond citing the broader layoffs. The decision to shelve Blackbird, despite its apparent promise and executive enthusiasm, highlights the challenging landscape of game development and the difficult choices facing major publishers like Microsoft.
The fate of Blackbird serves as a stark reminder of the risks inherent in large-scale game development. While the cancellation frees up resources for other projects, such as the anticipated Fallout 5, it also represents a substantial financial loss and a blow to the creative team involved. The gaming industry will be watching closely to see how Microsoft allocates its resources and what new projects emerge from ZeniMax Online Studios in the coming years.
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