Some video footage from Project Blackbird, a canceled online multiplayer title from Microsoft, was posted on social media nearly six months after it’s demise. Project Blackbird was being handled by Microsoft subsidiary Zenimax Online Studios, the creators of The Elder Scrolls Online, until the tech giant called for its cancellation.
Having been in development since 2018, Project Blackbird was said to be an MMO third-person shooter and action RPG that took inspiration from other space-based titles like Warframe and Destiny 2. Although very little was known about Project Blackbird during its active development, former Zenimax Online server engineer Eric Whelpley held praise for the game. Whelpley said that Project Blackbird was “pretty 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 canceled by Microsoft along with other games like the Perfect Dark remake and Everwild. Despite the cancellation, some internal footage of Project Blackbird was posted on Twitter by eXtas1stv. Although it is unclear how the two-minute video was obtained, it was intended to be a demonstration of the game’s lighting system. The footage from Project Blackbird took place in a dark, futuristic environment, with armed soldiers talking to alien characters that could be seen throughout the video. Though no character animations were shown in the leaked footage, some neon signs and a rail car system were also demonstrated. Residual moisture from the city’s mist was also visible on the windows of some buildings, and soft shadows were being cast from the different characters onto the dark pavement. It is not known what game engine was utilized for Project Blackbird‘s development.
Despite the lack of gameplay animations, the lighting demo footage was a good indicator that Project Blackbird was still neck-deep in its development cycle before Microsoft pulled the plug. In short, Project Blackbird was one of the casualties of Microsoft’s July 2025 layoffs, which saw approximately 9,000 jobs lost following 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 canceled. In late July, Microsoft CEO Satya Nadella stated that the company was “thriving” despite its controversial decisions. The tech giant’s push toward using AI as a replacement for some employees was seen as a potential factor behind its job cuts.
Project Blackbird’s Cancellation Still Lingers
Following the abrupt end of Project Blackbird‘s development, rumors about the driving forces behind its demise circulated on social media. One rumor indicated that 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 the reallocation of resources towards known IPs like Fallout. Although it is unlikely that Fallout 5 was the main cause of Project Blackbird‘s cancellation, it potentially played a significant role in Microsoft’s decisions.
However, Microsoft may still be in for a rough 2026. Although some rumors stated that the tech giant could still make further job cuts at the start of the year, Microsoft COO Frank X. Shaw refuted the claims of imminent layoffs, calling the rumors “wrong” and “speculative” on social media. However, it is not clear if Shaw’s statements were only about Xbox Game Studios being unaffected by future job cuts, or if it extended across the entire company. With the video of Project Blackbird‘s development now available on social media, time will tell if footage from other canceled Microsoft gaming projects will ever appear.
Source: Insider Gaming
