Canceled Project Blackbird May Have Been Perfect Replacement For Destiny, Insider Says
One of the major casualties of Microsoft’s 2025 layoffs was Project Blackbird, an action-RPG MMO developed by the team behind The Elder Scrolls Online at ZeniMax. The project, described as a blend of Destiny 2 and Cyberpunk 2077, was reportedly canceled in mid-2025. According to Bloomberg reporter Jason Schreier, it could have been the game to step in and succeed Destiny 2—now that Bungie has largely wound down development on it—as he believes it had the potential to be a huge hit.
In a recent video on his YouTube channel, Schreier discussed the current state of Xbox and shared his thoughts on Project Blackbird. He noted that Destiny has essentially fallen out of favor, and if Xbox had a game like Project Blackbird ready to go to fill the void, it could have been a massive success. “I’ve heard nothing but good things about that game,” Schreier said. “Granted, it was a big, very expensive project that spent a lot of time in development and had its own struggles, but everything I’ve heard about it is so positive. It's really a shame that it was canceled because I think it could have helped fill a much-needed gap for Xbox right now.”
The State of Xbox's Next Big Projects
Currently, Xbox’s next major releases include Gears of War: E-Day from The Coalition and Clockwork Revolution from InXile Entertainment. However, the console giant has faced criticism for its reliance on legacy IP rather than investing in new talent to create the next generation of blockbusters.
Moon Studios CEO Thomas Mahler, who oversaw the development of the critically acclaimed Ori games, recently commented on Xbox’s strategy. In an online post, Mahler stated, “Xbox has struggled for a long time to identify, empower, and protect the key creative people and teams who could have kept the brand at the top.” His remarks highlight concerns that Xbox may be missing out on innovative projects by focusing too heavily on established franchises.
Financial Reasons Behind the Cancellation
As for why Microsoft decided to cancel Project Blackbird, the answer may lie in financial constraints. In recent years, Microsoft has placed a strong emphasis on maintaining profitability. This has led to difficult decisions, even for high-profile projects.
Former The Elder Scrolls Online director Matt Firor shared his perspective on the decision in a recent interview. He acknowledged that while he disagreed with the outcome, he understood the reasoning. “You could be at the best studio in the world, and decisions happen that impact people,” Firor said. “I didn’t agree with what happened, but I understood the reasoning behind it. It is just financial. 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.”
While Project Blackbird may no longer be in development, its potential as a successor to Destiny 2 remains a topic of discussion among gaming enthusiasts and industry insiders alike. The cancellation underscores the ongoing challenges faced by major studios in balancing creative ambition with financial realities.
