A Friday Recap: The Quiet Fallout Behind ZeniMax’s Project Cancellation
Gamers and developers have been paying close attention to Microsoft and ZeniMax since July 2, when Microsoft announced mass layoffs, with cuts across the Xbox division that encompasses numerous companies, including ZeniMax. However, Microsoft has continued reducing staff and scaling back internal game development across several studios. ZeniMax and Bethesda were not spared. One of the biggest internal shifts came with the quiet shelving of an unannounced MMORPG and the uncertainty it created for over 220 developers at ZeniMax Online Studios.
When Microsoft acquired ZeniMax Media, the parent company of Bethesda Softworks, they stated that the acquisition would bring "an impressive portfolio of games, technology talent, as well as a track record of blockbuster commercial success, to Xbox." The messaging was focused on growth and long-term value. What followed since has been a mix of high-profile releases and quiet project cancellations.
According to the union’s July 14 statement, the unannounced game was shelved without warning from Microsoft. While the affected developers remain employed and on payroll, their future is unclear. ZOSU-CWA is now bargaining on their behalf to ensure they are treated fairly and, if necessary, allowed to exit with dignity.
Our core team had the chance to work with several of these developers and leaders in the past through our platform and individually, and can speak firsthand to their talent and professionalism. It is frustrating to know that this much skill and experience is suddenly in limbo. We wish we were far enough along in our own development to bring some of them onto our team. If there is any silver lining, it is that these folks will land on their feet. The industry is stronger with them in it.
This is not speculation. The timeline is public. Firor’s resignation was posted July 2. The union confirmed the project cancellation happened that same day.
These events happened in parallel, but the leadership message said nothing about the impact to the team or the project.
Matt Firor then announced his departure after 18 years with the company. The post was brief, personal, and respectful. It focused on leadership transition and his continued support for The Elder Scrolls Online. What it did not mention was the cancellation of that internal project. This was confirmed just days later by the ZeniMax Online Studios United-CWA (ZOSU-CWA).
Firor’s legacy in the industry is significant. From Mythic Entertainment’s Dark Age of Camelot to leading ESO, his track record speaks for itself. He was known for being direct and disciplined, and even sometimes uncompromising when the need arose. Yet, he was also fair with all staff no matter the department or job. He managed to balance the needs of developers and business without falling into the common MBA-driven pitfalls that have derailed so many other game and tech companies. His departure marks a clear turning point for the studio, not just in leadership but in direction.
We often see polished statements in this industry. What matters just as much is what is left unsaid. The developers behind the canceled project deserve acknowledgment. They spent years building something players will never get to see. Thanks to the work of ZOSU-CWA, they now have a voice. We should listen to it.