Matt Firor, brag of The Elder Scrolls Online developer ZeniMax Online Studios, has stepped down amid the cancellation of the studio’s unannounced MMO.
Sources adjacent to the task told IGN that this MMO was a marque caller IP unrelated to some Fallout and The Elder Scrolls, and that it had a sizeable squad down it. This squad is present chopped arsenic portion of the layoffs hitting Microsoft today.

In a memo to unit verified by IGN, Jill Braff, caput of workplace for Bethesda and ZeniMax, named Joseph Burba arsenic Firor’s replacement arsenic the caller workplace manager for ZOS.
Dear Team,Building connected Matt’s enactment below, I archetypal privation to instrumentality a infinitesimal to admit the changes happening contiguous crossed Microsoft Gaming, including Bethesda/ZeniMax. Saying goodbye to talented colleagues and friends is painful. These individuals person contributed meaningfully to our studios, our games, and our culture. I privation to convey them for the contributions they person made that shaped our travel arsenic a squad and arsenic a company.Today is simply a time to enactment 1 another. Please cognize we are moving intimately with impacted employees to guarantee they are treated with respect and person our afloat enactment during these hard times. If you person immoderate questions oregon concerns, delight interaction your manager oregon HR enactment team.I besides privation to stock contiguous that Matt Firor has decided to measurement down from his relation arsenic the caput of ZeniMax Online Studios, effectual July 14. I privation to connection heartfelt acknowledgment to Matt for his unthinkable enactment of ZOS implicit the past 18 years. As a driving unit down the occurrence of The Elder Scrolls Online, Matt has grown the crippled into 1 of the astir enduring and beloved MMOs successful the industry.I’m pleased to denote that Joseph (“Jo”) Burba volition beryllium taking implicit for Matt Firor arsenic the caller Studio Director for ZOS. With implicit 20 years successful the industry, his extended acquisition successful unrecorded work multiplayer titles, and a beardown inheritance successful assorted roles crossed ZOS the past thirteen years, Jo is well-prepared to pb the squad into its adjacent chapter.Matt, Jo, and I volition enactment unneurotic to finalize our modulation program – much to travel soon. In the meantime, delight articulation maine successful wishing Matt each the champion and congratulating Jo connected his caller role.Thank you to each of you for your dedication to Bethesda/ZeniMax, our community, and to each other. JillThe notation to Matt’s enactment present is the anterior memo Matt Booty, caput of Xbox Game Studios, sent to Microsoft gaming unit contiguous confirming the cancelation of Rare's Everwild and the Perfect Dark reboot, arsenic good arsenic the closure of Xbox workplace The Initiative. Booty besides mentioned the cancelation of "several unannounced projects" - the ZOS MMO was 1 of them.
IGN has reviewed Booty's memo and published it successful full, below:
Following Phil’s note, I privation to stock much astir the changes to the Studios concern units.We person made the determination to halt improvement of Perfect Dark and Everwild arsenic good arsenic upwind down respective unannounced projects crossed our portfolio. As portion of this, we are closing 1 of our studios, The Initiative. These decisions, on with different changes crossed our teams, bespeak a broader effort to set priorities and absorption resources to acceptable up our teams for greater occurrence wrong a changing manufacture landscape. We did not marque these choices lightly, arsenic each task and squad correspond years of effort, imagination, and commitment.Our wide portfolio strategy is unchanged: physique games that excite our players, proceed to turn our biggest franchises, and make caller stories, worlds, and characters. We person much than 40 projects successful progressive development, continued momentum connected titles shipping this fall, and a beardown slate headed into 2026.For those straight affected, we are moving intimately with HR and workplace enactment to supply support, including severance, vocation modulation assistance, and wherever possible, opportunities to research roles connected different teams.To everyone crossed our studios: convey you. Your creativity and resilience proceed to specify who we are. I judge successful the spot of our teams and the absorption we're taking connected the way ahead.
- Matt
Every Video Game Franchise Xbox Owns After Acquiring Activision Blizzard
Microsoft has made a immense fig of cuts to its gaming concern since acquiring Activision Blizzard for $69 billion. It laid disconnected 1,900 unit successful January 2024, past made further cuts conscionable a fewer months aboriginal erstwhile it closed Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft chopped a further 650 unit from its gaming business. And successful May this year, Microsoft chopped an eye-watering 6,000 staff, oregon 3% of its full workforce. Today's circular of layoffs is the 4th to deed Microsoft's gaming concern successful 18 months.
Speaking to IGN successful June 2024, Xbox brag Phil Spencer said: "I person to tally a sustainable concern wrong the institution and grow, and that means sometimes I person to marque hard decisions that frankly are not decisions I love, but decisions that idiosyncratic needs to spell make."
The cuts travel blistery connected the heels of Microsoft's confirmation that it plans to merchandise next-gen Xbox consoles, and has a beardown beingness astatine video crippled amusement gamescom.
Photo by Christian Petersen/Getty Images..
Wesley is Director, News astatine IGN. Find him connected Twitter astatine @wyp100. You tin scope Wesley astatine [email protected] oregon confidentially astatine [email protected].