This July, Microsoft’s Phil Spencer declared the company’s gaming division was thriving, but almost immediately followed that statement with significant layoffs. The cuts led to the closure of multiple game studios, the cancellation of projects, and widespread changes across Microsoft’s entire gaming lineup, the effects of which are still being felt.
The cancellation of a new online game, codenamed Blackbird, and subsequent layoffs significantly impacted Zenimax Online Studios, the company behind The Elder Scrolls Online. The situation was serious enough that Matt Firor, who had led the studio for 18 years, resigned as president, even though he wasn’t part of the first round of job cuts.
Rich Lambert, the new game director at Zenimax, explains that he’s taking on many different roles. The duties previously held by Firor are now shared between Lambert and the new studio head, Jo Burba. Burba is concentrating on the day-to-day operations of the studio, while Lambert is focusing on broader studio goals and planning for the future.
Many believe the recent layoffs led to Firor leaving the company. While Lambert wouldn’t say that was the reason, he admitted it was a difficult period for Zenimax. According to reports, employees were suddenly locked out of Slack and weren’t given clear information about the situation.
It was incredibly difficult and upsetting,” Lambert shared, noting he’d known some of those impacted for more than ten years. “But eventually, you have to recover and remember that we have a duty to our players, to the game itself, and to everyone still here. It’s a tough challenge, but our focus is on continuing to move forward and keep *The Elder Scrolls Online* thriving.”
Lambert expressed shock at Matt Firor’s departure, having worked with him for nearly two decades. However, he emphasized respecting Firor’s autonomy and right to make his own decisions, noting Firor’s extensive experience in the industry.
Lambert explained that the team is now emphasizing that success depends on everyone working together, not just one individual. He also mentioned that the game is currently undergoing changes, and they’re preparing for the next season. The team is aiming to release updates more frequently, focusing on smaller, quicker improvements.
Although updates are coming out more frequently, Zenimax isn’t currently integrating AI directly into the game itself. According to Lambert, they’ve explored the possibilities, especially given Microsoft’s strong focus on AI. However, its use is limited at the moment. Lambert personally finds AI helpful for tasks like summarizing meetings and managing his email, but it’s not yet a major component of the game’s development.
Besides continuing to support The Elder Scrolls Online, Zenimax is eager to create new games. However, when asked about Blackbird – a project rumored to be in development for years – they remained silent. “I’m not finished making games, and neither is the team,” says Lambert. “I have plenty of ideas, and we hope to reveal them in the future.”
You can’t rely on any single game lasting forever. We definitely hope Elder Scrolls Online thrives and remains popular for decades, and we’re dedicated to making that happen. However, it’s risky to focus all our efforts on just one thing.
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2025-09-16 19:47