Practically two weeks after Microsoft introduced its intent to lay off roughly 9,000 staff, one more office bloodbath that noticed deep cuts throughout the corporate’s gaming division, the ZeniMax On-line Studios United union says it’s now bargaining with the corporate “over how we transfer ahead” following the cancellation of a brand new MMO that was in growth on the studio.
The large layoffs, which Xbox boss Phil Spencer introduced on July 2 by speaking about how nice it is all going for the gaming division, additionally resulted in a number of cancellations together with Everwild, the Excellent Darkish reboot, and a brand new MMO in growth at ZeniMax On-line Studios.
Subsequent studies claimed that sport was not a typical fantasy MMO as you would possibly count on from the studio behind The Elder Scrolls On-line, however quite a Future-style shooter, codenamed Blackbird, that Spencer actually preferred. Not sufficient to put it aside, which makes me marvel what precisely his job as the highest man at Xbox really is, however that is a diversion for one more day. In any occasion, ZeniMax was considered one of a number of Xbox studios hit arduous by the layoffs, which in response to a brand new assertion from ZeniMax On-line Studios United got here fully with out warning.
(Considerably confusingly, given their comparable names, ZeniMax On-line Studios United is separate from the ZeniMax Employees United union: ZWU, fashioned in January 2023, represents QA employees on the studio, whereas ZOSU, which was introduced in December 2024, contains “internet builders, designers, engineers, and graphic artists.”)
“Earlier this month, Microsoft indefinitely shelved an unannounced MMORPG at ZeniMax On-line Studios, a shock to the 222 ZOSU-CWA builders engaged on the challenge,” the union stated in an announcement posted to Bluesky. “It has been heartening and validating to see our sport talked about within the press and by gamers that may have liked to see the outcomes of our work.
“Undoubtedly, a future has been stolen from many people and our neighborhood won’t ever expertise an incredible sport. Nonetheless, regardless of discussions concerning the standing of our employment, the very fact is: we have now not but been laid off.”
The union stated that whereas “one thing like a layoff is inevitable” for a lot of its membership, the very fact of its existence has helped soften the blow for impacted staff by sharing sources and knowledge, and negotiating the absolute best exit phrases for individuals put out of labor.
“The place Microsoft has didn’t assist the proficient craftspeople who’ve generated billions in income, our union has stepped as much as present readability and assist,” the union stated. “It’s true {that a} layoff could also be sooner or later for a few of our members. Nonetheless, because of our organizing, we’re in a position to make sure that these impacted will be capable to depart with dignity.”
It is a fairly clear signal that issues aren’t going properly when the one upside of your scenario is that you’re going to (hopefully) be allowed to “depart with dignity,” however at this level that no less than places laid-off staff forward of Microsoft itself. Xbox, which by rights must be dominating the videogame enterprise, is as an alternative a confused mess, whereas Microsoft is betting the home on AI, plowing tens of billions of {dollars}—a deliberate $80 billion in 2025 alone—right into a blind pursuit of a MechaHitler of its very personal.


