Canceled Project Blackbird Could Have Replaced Destiny 2, Insider Says

Project Blackbird, an action-RPG massively multiplayer online (MMO) game developed by The Elder Scrolls Online team at ZeniMax, was reportedly canceled in mid-2025 during Microsoft's layoffs. The game was described as a blend of "Destiny 2 meets Cyberpunk 2077."

Bloomberg reporter Jason Schreier stated that Project Blackbird could have been a strong successor to Destiny 2, especially as Bungie winds down its development. In a video on his YouTube channel, Schreier expressed that he had heard "nothing but good things" about the game, suggesting it could have been a "huge hit" and filled a "much-needed gap for Xbox."

Despite being an expensive project that spent considerable time in development and faced its own challenges, Schreier noted the positive feedback surrounding it. Currently, upcoming titles for Xbox include "Gears of War: E-Day" from The Coalition and "Clockwork Revolution" from InXile Entertainment.

Moon Studios CEO Thomas Mahler, who led development on the Ori games published by Xbox, has criticized Xbox's strategy. Mahler suggested the company relies too heavily on existing intellectual property (IP) rather than fostering new talent for blockbuster titles. He stated that Xbox has "struggled for a long time to identify, empower, and protect the key creative people and teams."

The cancellation of Project Blackbird may stem from financial reasons, as Microsoft has increased its focus on profitability. Former The Elder Scrolls Online director Matt Firor indicated that large, expensive projects are subject to close financial analysis. He noted that while he "didn't agree with what happened," he "understood the reasoning behind it," calling it "just financial."

According to GameSpot, Firor explained, "We're a number on a ledger, and if that number is large, it is ripe for analysis, shall we say, and that number was always large." (Source: GameSpot)