ZeniMax Online Studios, the developer behind the popular MMORPG The Elder Scrolls Online, is undergoing significant leadership changes as co-founder and President Matt Firor announces his departure. This move comes as part of Microsoft's broader restructuring efforts, which have resulted in widespread layoffs across its gaming divisions.

The gaming industry has been rocked by Microsoft's recent workforce reductions, affecting multiple subsidiaries including ZeniMax. Among the casualties is an unannounced MMO project codenamed Project Blackbird, which had been in development since 2018. While Microsoft hasn't officially confirmed the cancellation, sources indicate this ambitious project will not see release.

Firor's departure was announced via ZeniMax Online Studios' official Twitter account on July 2. While the studio reassures fans that The Elder Scrolls Online will continue development, the loss of its founding president marks a significant transition. Key figures including Game Director Rich Lambert and Executive Producer Susan Kath will remain to steer the project forward.

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Prior to his departure announcement, Firor had revealed exciting plans for The Elder Scrolls Online, including the development of crossplay functionality. While the studio hasn't clarified how recent changes might affect this feature, the cancellation of Project Blackbird suggests ZeniMax may now focus more intensely on its flagship MMO.