Former developers from ZeniMax Online Studios, known for their work on The Elder Scrolls Online and the cancelled Project Blackbird, have announced the formation of Sackbird Studios, an independent and employee-owned game development company.
Sackbird Studios was founded after Microsoft’s restructuring earlier this year, which led to the cancelation of ZeniMax’s unannounced MMO project Project Blackbird and a wave of layoffs across the division.
The founding team, consisting of fewer than ten former ZeniMax developers, stated that the decision to establish the new studio was driven by a desire to retain creative autonomy and ensure long-term stability without external financial influence.
Structure and Mission
The studio is fully employee-owned and self-funded, with no outside investors or publishers.
“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.”
David Worley, Co-Founder & COO at Sackbird Studios

“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.”
Lee Ridout, Chief Executive Officer at Sackbird Studios
Sackbird’s public statement emphasizes a focus on sustainable development practices, small-team collaboration, and a long-term operational plan designed to minimize financial pressure.
Current Operations
The studio confirmed that it is in active development on its first original project for PC and console platforms. No details have been disclosed regarding the project’s title, genre, or release window.