Sacked, But Not Stopped: Ex-Elder Scrolls Online Devs Form Worker-Owned ‘Sackbird Studios’ After Xbox Cancellation

A group of veteran developers from ZeniMax Online Studios (ZOS), the team behind The Elder Scrolls Online, has announced the formation of a new, completely employee-owned and self-funded independent studio named Sackbird Studios.

The formation of the studio is a direct response to Microsoft’s mass layoffs earlier this year, which resulted in the cancellation of a long-in-development, unannounced MMO shooter codenamed Project Blackbird at ZOS.

The studio’s name, Sackbird, is a tongue-in-cheek reference to the cancelled project, serving as a defiant embrace of the circumstances that led to their new venture.

Prioritizing Creative Independence Over Corporate Targets
The founding team is composed of former leads and key contributors on The Elder Scrolls Online and the core developers of the ambitious Project Blackbird. They emphasize that their new structure—fully employee-owned and self-funded for multiple years—is a deliberate move to escape the pitfalls of AAA development and protect their creative process.

Lee Ridout, CEO of Sackbird Studios and a former director of e-commerce for ESO, explained the motivation:

“We’re grateful for our time at ZeniMax Online Studios; it shaped us as developers and as people. When I learned that Blackbird was being cancelled and a lot of people were losing their jobs, it lit a fire. We realized the best way to protect our craft—and our team—was to create a studio where creative independence isn’t negotiable.”

David Worley, COO, and an ex-ZeniMax principal tools engineer, further elaborated on the benefits of their worker-owned model:

“After years in AAA, we wanted the freedom to take smart risks without waiting for a greenlight or chasing quarterly targets. We’re fully employee-owned and funded, which means we only answer to people who are passionate about games.”

Focused on a New Original Project
Sackbird Studios is currently a small, senior team of fewer than ten people. While they have not yet formally announced their first game, they have confirmed they are in active development on an original project for PC and consoles.

The move highlights a growing trend among veteran developers who, following waves of industry layoffs and project cancellations at major corporations like Microsoft, are opting for smaller, more sustainable, and creatively independent structures. By self-funding for a “long runway,” Sackbird aims to deliver “bold, character-driven experiences free from corporate compromises.”