Microsoft has reportedly pulled the plug on a major ZeniMax Online Studios project codenamed Blackbird, a Destiny-like MMORPG, in order to focus development efforts on the future of the Fallout franchise, specifically Fallout 5.

According to new reports from Jez Corden on the Xbox Two podcast, corroborated by Bloomberg’s Jason Schreier, Microsoft made a strategic decision to reallocate resources away from Blackbird and into Bethesda Game Studios' next entry in the Fallout series. The move signals a renewed investment in Fallout as a flagship IP for Xbox, even as The Elder Scrolls VI continues to take priority under Todd Howard’s direction.

Fallout Over Blackbird

Codenamed Blackbird, the canceled MMORPG was said to have been an action-based online title inspired by Bungie’s Destiny, combining fast-paced combat with persistent multiplayer elements. However, Microsoft, now home to World of Warcraft and several online service games following its Activision-Blizzard acquisition, reportedly saw Blackbird as potentially redundant within its portfolio of live-service titles.

Jez Corden noted that he wasn’t entirely convinced Blackbird was a traditional MMORPG, emphasizing during the Xbox Two podcast that if it was, it would’ve needed to be “big, huge game” and feature gameplay that made it worth the investment and attention. That uncertainty further reflects the ambiguity surrounding the project and why Microsoft might have been hesitant to proceed.

Okay. And from what I heard, it was a case of tradeoffs and that the program to expand Fallout 5, and just Fallout in general, that’s where they’ve decided to make the investments and where the money will be translated into more of a surefire win.

said Jez Corden 

Fallout 5

While Fallout 5 has not yet been officially announced by Bethesda or Microsoft, reports suggest it has been quietly greenlit, with early internal work already underway. Fans have been waiting nearly a decade since the launch of Fallout 4, and interest in the franchise has surged again recently thanks to the success of Amazon’s Fallout TV series.

Despite the hype, Todd Howard has remained firm that The Elder Scrolls VI will launch first. That said, shifting talent and budget from Blackbird to Fallout development could hint at Microsoft’s long-term commitment to the post-apocalyptic franchise. There are even whispers that a dedicated team could be spun up solely for Fallout projects, possibly drawing from developers at Elder Scrolls Online.

The Fallout Strategy

The decision to cancel Blackbird may ultimately come down to focus and brand power. Microsoft has demonstrated increasing willingness to double down on IPs with proven cultural weight, and Fallout, with its transmedia success and loyal fanbase fits the bill.

While the MMO space remains lucrative, it’s also overcrowded, and competing against your own titles like WoW or ESO makes less sense when a surefire single-player blockbuster like Fallout 5 is waiting to happen.