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Phil Spencer reportedly had so much fun playing the Elder Scrolls Online dev's unannounced MMO that Xbox's Matt Booty had to take his controller from him — 4 months later it's canceled

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By Jordan Gerblick published 3 July 2025

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Phil Spencer
(Image credit: Xbox)
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An unannounced Destiny-style MMO shooter previously in development at Elder Scrolls Online studio ZeniMax Online was canceled this week as part of Microsoft's layoff bloodbath, and according to a new report, Xbox boss Phil Spencer was a big fan of the game.

According to Bloomberg's Jason Schreier, there was a meeting in March where Spencer had the chance to go hands on with ZeniMax's new game, codenamed Blackbird, and he had so much fun that Xbox head Matt Booty had to take away his controller so the meeting could continue.

Blackbird was reportedly an online looter shooter vaguely similar to Destiny, except with more of a focus on vertical exploration. According to Schreier, it had something of a Blade Runner, sci-fi noir aesthetic and abilities like wall climbing, double jumping, wall climbing, and a grappling hook players could use to toss themselves around skyscrapers.

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  • The Elder Scrolls Online Elder Scrolls Online lead says Microsoft's layoffs aren't the reason the MMO is switching over to smaller updates
  • An orc from World of Warcraft roars at the screen Blizzard's canceled WoW follow-up was a "1 server, 1 world" MMO with GTA and Animal Crossing influences, ex dev says

Despite Spencer and other Xbox executives reportedly being extremely impressed by Blackbird, it ultimately wasn't enough to save it. ZeniMax staff reportedly weren't given an explanation for its cancelation, and longtime studio director Matt Firor departed the studio the same day.

This week's Microsoft layoffs impacted about 9,000 workers, or around 4% of its total workforce. Along with Blackbird's cancelation, Rare's action-adventure game Everwild and Xbox's Perfect Dark reboot were canceled. Perfect Dark studio The Initiative was shuttered entirely and Forza studio Turn 10 lost about 50% of its staff.

Xbox puts a bandage over its latest self-inflicted gaping wound with Helldivers 2 coming to Xbox Series X next month – inexplicably on the same day as Gears of War: Reloaded

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Jordan Gerblick
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After earning an English degree from ASU, I worked as a corporate copy editor while freelancing for places like SFX Magazine, Screen Rant, Game Revolution, and MMORPG on the side. I got my big break here in 2019 with a freelance news gig, and I was hired on as GamesRadar's west coast Staff Writer in 2021. That means I'm responsible for managing the site's western regional executive branch, AKA my home office, and writing about whatever horror game I'm too afraid to finish.

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