In Microsoft layoffs, MMO from Elder Scrolls online-developed

Matt Firor, boss Elder Scrolls Online Developer Zenimax Online Studios resigned in canceling the studio's unannounced MMO.

Sources close to the project told IGN that the MMO is a brand new IP that has nothing to do with Ballout and Elder Scrolls and has a large team behind it. Now, the team is cut to Layouts hit Microsoft today.

In an IGN-verified employee memorandum, Bethesda and Zenimax studio head Jill Braff appointed Joseph Burba as the replacement for Firor as the new studio director of ZOS.

Dear team,

Building on the Matt comment below, I first want to take a moment to confirm the changes that have taken place in today’s Microsoft games, including Bethesda/Zenimax. It is painful to say goodbye to talented colleagues and friends. These people have made meaningful contributions to our studio, our games and our culture. I want to thank them for their contributions that shape our journey as a team and as a company.

Today is a day of mutual support. Please know that we are working closely with affected employees to ensure they are respected and fully supported by us during these difficult times. If you have any questions or concerns, please contact your manager or HR Support Team.

I also want to share today, Matt Firor decided to lead Zenimax Online Studios from July 14th. I want to thank Matt for his incredible leadership skills for ZOS over the past 18 years. As a driving force behind the success of the online Elder Scrolls, Matt has grown the game into one of the most enduring and popular MMOs in the industry.

I am pleased to announce that Joseph (“Jo”) Burba will take over as Matt Firor as the new studio director for ZOS. Over the past 13 years, he has more than 20 years of industry in the industry, with his extensive experience in on-site multiplayer championships and a strong background in various roles in ZOS, Joe is well prepared to bring the team to the next chapter.

Matt, Jo and I will work together to finalize our transition plan – faster time. Meanwhile, please join me in wishing Matt all the best and congratulations to Joe on his new role.

Thank you for your dedication to Bethesda/Zenimax, our community and each other.

Gill

Matt, the head of Xbox Game Studios, mentioned Matt's notes to Matt Booty, the director of Microsoft Gaming employees, today sent to Matt Booty. Cancel the rare Everwild and Perfect dark rebootand Xbox Studio's shutdown plan. Booty also mentioned the cancellation of “several unannounced projects” – ZOS MMO is one of them.

IGN reviewed Booty's memo and posted it in full below:

Following Phil's notes, I would like to share more information about changes to the studio business unit.
We have decided to stop developing perfect dark and eternal development and have gotten rid of several unnotified projects in our portfolio. To do this, we are closing a studio, i.e. initiative. These decisions, along with other changes in our team, reflect broader efforts to align priorities and concentrate resources to build our teams in a changing industry landscape for greater success. We didn’t make these choices easily because each project and team represented years of hard work, imagination and commitment.

Our overall portfolio strategy has not changed: make games, inspire our players, continue to grow our largest franchise, and create new stories, worlds and characters. We have over 40 active development projects, with the title continued momentum this fall and a strong slate entering 2026.

For those who directly impact, we are working closely with HR and studio leadership to provide support, including severance, career transition assistance, and possible opportunities to explore the roles of other teams.

To everyone in our studio: Thank you. Your creativity and resilience continue to define who we are. I believe in the strength of our team and the direction we are on the road ahead.

– Matt

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