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MMORPG Shock: ZeniMax Boss Quits After Game Cancellation Drama
July 6, 2025In a move few saw coming—but maybe should’ve—Matt Firor has officially stepped down from his role as president of ZeniMax Online Studios. After nearly two decades with the company and being a major force behind the success of The Elder Scrolls Online (ESO), Firor’s dramatic exit is sending echoes through the MMORPG community.
The announcement surfaces amidst a tough week for developer morale: widespread layoffs at Xbox studios (including a major impact at Bethesda-owned ZeniMax) and the sudden cancellation of an unannounced in-development MMO. It’s safe to say the MMO development space within the Microsoft-Xbox universe is looking more uncertain than ever.
A Farewell After 15+ Years of Tamriel
Firor’s involvement with the Elder Scrolls franchise began long before ESO launched in 2014. He was instrumental in steering ZeniMax from a startup MMO studio into a global multiplayer powerhouse. Under his leadership, Elder Scrolls Online weathered a rough launch, revamped with “Tamriel Unlimited,” and eventually grew into one of the most content-rich MMOs in the market today—across PC, Mac, PS5, and Xbox Series X/S. Yet, his departure comes at a fragile moment. As Firor noted in his outgoing statement, it was time to “move on” and “take time off.” But timing is everything… and this is right after months of low visibility on the studio’s next project—and the axe falling on that secretive MMORPG in the works.
Cancelled MMO Raises Big Questions
Sources, including Eurogamer, confirmed that ZeniMax had been developing a brand-new MMO that has now been completely shut down. The mystery project had reportedly been in the pipe for years—making the cancellation not just a cut, but a total amputation of effort, talent, and momentum.
What kind of MMO was it? Speculations range from an original IP (unlikely for ZeniMax) to perhaps a multiplayer cooperative fantasy RPG leveraging Bethesda’s rich universes. Rumours had even floated about a tie-in with the Fallout or Starfield universes. Regardless, it’s now dust. Another casualty of the post-Microsoft-acquisition clean-ups and Xbox’s “narrowing focus.”
Layoffs Strike ZeniMax Hard
The blow wasn’t just creative—it was human. The cancellation rippled into layoffs at ZeniMax Online Studios. Multiple long-tenured developers, many of whom had worked on Elder Scrolls Online for years, revealed they’d been let go amid restructuring. And Firor leaving the studio just as these cuts sink morale further? It adds fuel to growing frustration within the Xbox ecosystem. Let’s not forget this follows 2024’s tough headlines: massive job losses at 343 Industries, Arkane Austin’s closure, and Redfall’s swift abandon. Xbox and Bethesda are bleeding developers in a push for profitability—and ZeniMax’s MMO division has clearly taken a hit.
What’s Next for Elder Scrolls Online?
There’s good news (ish). ESO continues to truck along with new content. The Gold Road expansion dropped in June 2024, and the game’s strong presence on every major platform means support isn’t ending anytime soon. But without Firor, fans are worried. He was more than just a studio head—he was the face of the MMO’s direction, sometimes literally during livestreams and keynotes. With no clear heir apparent, the future vibe of ESO could be… different. New leadership could mean big tonal shifts—or worse, a dialling back of innovation to maintain what’s already here.
Xbox’s Shrinking MMO Vision?
This departure shines a harsh spotlight on Xbox’s MMO ambitions. Apart from ESO, Microsoft has little else in the genre. And with the mystery MMO now gone, ZeniMax’s once bustling plans for a post-ESO future seem frozen.
It’s odd too, considering how Xbox Game Pass thrives on long-form content. MMOs are a content goldmine if done right. But clearly Bethesda—or Microsoft above them—doesn’t see that same long-term payoff anymore. With big RPG franchises like Starfield and The Elder Scrolls VI in the pipeline, perhaps the MMO sandbox just didn’t fit in the new vision.
Still, questioning that decision is fair. After all, ESO proved that with ongoing care and creative expansion, an MMO can live a decade or more and generate insane loyalty. Cancelling a secret MMO that may have followed suit feels short-sighted at best, and defeatist at worst.
Where Does Matt Firor Go From Here?
No word yet on what’s next for Firor—“taking a break” could mean anything from real rest to plotting his next MMORPG venture. His track record is gold, and if he lands at a rival studio (Square Enix, Amazon Games, or NetEase, anyone?), that could usher in his next digital world. What’s certain is that we’ve lost another major MMO mind from the top ranks, just as the genre’s future starts to feel ambiguous. And for Elder Scrolls Online players, it’s a bittersweet time. The game lives, sure—but its champion has left the battlefield.
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