In a significant blow to the gaming community, Microsoft has reportedly axed ZeniMax Online Studios' secret MMORPG project, internally known as 'Project Blackbird.' This cancellation comes as part of massive layoffs affecting thousands across Microsoft's gaming divisions, including several high-profile studios under the Xbox umbrella.

ZeniMax Online Studios, best known for developing the long-running MMORPG The Elder Scrolls Online, had been quietly working on this new project since 2018. While never officially announced, industry insiders suggest the game was intended to be another ambitious online multiplayer experience set in a fantasy universe.

The news was first reported by Bloomberg and later confirmed by renowned gaming journalist Jason Schreier. According to sources, the cancellation is part of Microsoft's broader restructuring that will see approximately 9,000 employees across its gaming division lose their jobs - representing about 4% of Microsoft's total workforce.

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This isn't the only casualty in Microsoft's recent cuts. Reports indicate that Rare's long-in-development Everwild and The Initiative's Perfect Dark reboot have also been canceled. Additionally, studios working on Call of Duty and Forza Motorsport franchises are facing significant staff reductions.

Despite these setbacks, The Elder Scrolls Online continues to thrive with a dedicated player base. The MMORPG, launched in 2014, still maintains an impressive daily active user count exceeding 88,000 players - a testament to ZeniMax Online's ability to create enduring online worlds.