Microsoft`s widespread layoffs and game cancellations earlier this year, which notably impacted Project Blackbird—an MMO envisioned as a blend of Cyberpunk 2077 and Destiny by The Elder Scrolls Online developers—have led to a significant new development. The core team behind Blackbird has now come together to establish Sackbird Studios, an independent, employee-owned venture.
In an announcement on its official website, Sackbird Studios revealed that it is self-funded for several years, relying entirely on its own resources rather than external investors. This financial independence guarantees the team complete creative autonomy over their future projects.
“After years in AAA, we wanted the freedom to take smart risks without waiting for a greenlight or chasing quarterly targets,” stated David Worley, Chief Creative Officer at Sackbird Studios. “We`re fully employee-owned and funded, which means we only answer to people who are passionate about games.”
Lee Ridout, CEO of Sackbird, expressed gratitude for their tenure at ZeniMax Online Studios, acknowledging its formative impact on their professional and personal growth. He explained that the cancellation of Blackbird and subsequent job losses ignited a determination to safeguard their craft and team by founding a studio where creative freedom is paramount.
“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,” Ridout added.
Currently, the studio comprises fewer than ten employees. While Sackbird has not yet unveiled specifics about its inaugural game, it has confirmed that it will be an original title launching on both PC and consoles. The studio reiterated its commitment to developing “bold, character-driven experiences” unburdened by corporate constraints.

