ZeniMax Online Studios is undergoing leadership changes and project cancellations following the departure of its head, Matt Firor. Firor announced his exit after Microsoft canceled the studio's unannounced MMO game, described as a 'sci-fi noir' looter shooter reminiscent of Destiny 2 and Blade Runner. Despite positive reactions from Xbox executives, including Phil Spencer who was impressed by early demos and a vertical slice shown as recently as March 2025, the project, known internally as Blackbird, was ultimately discontinued. Concurrently, Free Range Games, developer of Return to Moria, laid off 80 employees. Additionally, Rare may have lost one of its veteran directors following the cancellation of its game Everwild. These developments highlight significant restructuring and project reevaluation within major game studios under Microsoft’s umbrella.