On July 2, 2025, Xbox made the difficult decision to lay off over 9,000 employees across its studios, a move that sent shockwaves through the gaming industry. Among those affected were teams from renowned studios such as Activision Blizzard, Bethesda, and Zenimax Online Studios, the creators behind the acclaimed The Elder Scrolls Online. That evening, Bloomberg’s Jason Schreier reported the cancellation of Zenimax’s anticipated MMO, codenamed Project Blackbird, which had been rumored to feature a sci-fi shooter aesthetic reminiscent of Blade Runner. While the ESO team continues to innovate with new features, including swimming mounts and scribing, I spoke with Rich Lambert, Zenimax’s studio game director, who recently stepped into his role, about the impact of these layoffs.
Reflections on a Tumultuous Time
The layoffs at Xbox marked one of the most significant reductions in the gaming sector to date. Ben Jones, the game director for Project Blackbird, confirmed the project’s cancellation alongside the demise of Everwild, an action-adventure title from Rare, the studio behind Sea of Thieves. The fallout from these layoffs has been particularly poignant for the Elder Scrolls Online team and Zenimax as a whole.
“It was a super emotional time,” Lambert recalls. “There were friends and colleagues involved that I had personally worked with for ten to fifteen years, and we lost them. You go through a sort of mourning process.”
Despite the emotional toll, Lambert emphasizes the studio’s commitment to its community and the game. “At the end of the day, we still have our commitment to our community, to the game, and everyone that’s still here, and we have to move forward, as hard as that is. That’s what the studio is focused on: we want ESO to be the 30-year MMO.”
However, Lambert has transitioned to a more strategic role within the company, passing the game director baton to Nick Giacomini, the longtime director of product management. Lambert describes this shift as “bittersweet.”
“Nick is here to do the day-to-day, but I’m still involved in it – it’s kind of my baby,” he shares. “But, I get to look at the studio-level things and the future-level things, and that’s all new to me. It’s a new challenge and it’s really, really exciting. Stepping away’s been way harder than I thought it was going to be, but I’m excited to see how Nick makes his mark and how the team moves forward.”
Despite the heavy challenges, the Elder Scrolls Online continues to evolve, buoyed by the success of the Oblivion remaster and a revamped seasonal model. Lambert notes that while some players may still be unaware of the game’s ongoing developments, the goal is to position ESO alongside its biggest competitors. Given the strength of the IP, the potential for growth remains, though the future is uncertain—especially with the anticipated release of Elder Scrolls 6 on the horizon.
For those looking to revisit the classic, we have curated a list of the best Skyrim mods. And for those still enjoying the remaster, our rundown of the best Oblivion Remastered mods will keep you engaged. We strive to provide you with the best gaming experiences.
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