ZeniMax Online Studios, the developer behind The Elder Scrolls Online, has reportedly cancelled its unannounced MMO project after more than seven years in development, resulting in significant layoffs across the studio. The move comes under Microsoft, which owns ZeniMax, and marks a surprising turn for one of the MMO industry’s most stable studios.
Senior staff including Chris Lynn, Senior Production Manager, and Ben Jones, Game Director for the new MMO, confirmed the cancellation and layoffs on LinkedIn. Jones described the project as the “most exciting and ambitious” of his career, indicating the scale and potential scope of the now-cancelled game.
The MMO had been in development since around 2018 and was reportedly built on a new engine specifically for the project. While official details were never released, job postings suggested it was a AAA MMO in a likely sci-fi setting, with roles for vehicle designers and related systems. There were no substantial leaks about the IP, but speculation tied it to a potential Starfield MMO, given Bethesda’s strategy of pairing single-player RPGs with live MMO communities to extend franchise life between mainline entries.
The exact reasons for the cancellation are unknown, but several industry factors may have influenced the decision:
- Starfield has not maintained player engagement comparable to The Elder Scrolls series, despite efforts like the Shattered Space DLC.
- MMOs remain risky investments in a market where players typically commit to a single title long-term, making it difficult for new entries to capture and retain audiences.
- Microsoft’s portfolio now includes World of Warcraft via Blizzard, reducing the incentive to launch a competing MMO under a new IP.
The layoffs also coincide with the retirement of ZeniMax Online Studios head Matt Firor after 18 years. Firor was instrumental in the creation and ongoing success of The Elder Scrolls Online, which remains a profitable live service title over a decade after its launch.
With the cancellation, questions arise about the future of ZeniMax’s MMO development. The ESO community has long requested improvements to the aging game engine, and with the studio having developed new engine technology for the now-cancelled MMO, there is speculation about the possibility of ESO 2 or a significant technical overhaul in the future.
For now, the MMO genre continues to face significant challenges, with even established studios finding it difficult to launch and sustain new projects in a saturated and risk-averse market.
