I just saw the video and wanted to post it here, but you were quicker.
Hack confirms my fears about the future of ESO. Let's see how it goes.

It's an incredible pity that Zenimax didn't/couldnt go private, instead of being acquired by Microsoft.

Personally I never peek behind the curtain of a company/game/movie/tv-show/etc. So I don't really care what goes on behind the scenes of a company, in this case ESO. That does not mean I don't feel bad for the people who were layed off, and I hope they will find their place elsewhere. But I just try to play the game and tune out everything around it.

The game itself has gotten so large, that not getting big new content for a while may actually be a good thing. Especially with everything that is already available, both zone-wise and system-wise. With all the new content, ZOS also painted themselves into a corner somewhat. As with every new chapter they also needed to add content for all those new systems they released over the years. Making a new chapter larger and larger(more expensive to create), for the same monetary return. This was/is not sustainable.

That said, due to the shift in business model from chapters to content pass, I am quite hesitant about spending money on ESO right now. Atleast before getting a proper new content/system roadmap for the coming year(s) for ESO. But I remain hopeful.

My other hope is ESO does cut some of the on-the-side stuff, like the CGI trailers for example. I never really cared for those things, and to me these felt like wasting money that does not directly get put back into the game itself.

Sarannah wrote: »

My other hope is ESO does cut some of the on-the-side stuff, like the CGI trailers for example. I never really cared for those things, and to me these felt like wasting money that does not directly get put back into the game itself.

All games have advertising budgets that are separate from development budgets and cannot be put back into the game. If that budget isn't used for those CGI trailers, it will just go into another ad.

Destai wrote: »

My heart goes out to the those involved in the layoffs. If it was anyone from ESO, thanks for all your hard work giving us all such wonderful entertainment. I hope everyone involved lands on their feet, and is somewhere they're appreciated.

I really do worry about the game's future. Any assurance about future plans and commitments to them is going to be doubted, because Microsoft could just rip the rug out from under them. And even if those plans are still in place, what's the impact of staffing changes to them?

For me, it's been pretty obvious there's less hands involved in ESO for a 2 or 3 years now. Really feeling it this year. I think folks like @ZOS_GinaBruno and @ZOS_JessicaFolsom need to work with leadership and just give us some transparency on what's going on. I think not doing that will be worse for the game.

Unfortunately, ESO has lost staff.

Matt Firor just gave us his farewell. He was the founder of this whole game. His contribution to what this game is was enormous and will be surely missed. You can see his farewell statement pinned here somewhere.

We also lost a lore master, a lead concept artist, and a lead content designer. And these are just the people who have made public statements. I'm not sure that I'm able to post names of these guys despite their public statements but just know this sucks.

There was also a shameful lack of communication about this leading to widespread confusion and panic. It is truly awful what just happened. My heart is with the workers.

https://www.gamedeveloper.com/business/zenimax-staff-lambast-inhumane-xbox-layoffs-it-s-difficult-to-work-when-you-re-looking-at-a-graveyard-

It was so cruel that they did this right after the games 10th anniversary...feel so sad for the devs and other workers. Our heart is with ESO and with you, we believe in you.

@ZOS_Kevin I really appreciate the fact you wish to keep this thread open and I would ask all posters to be mindful of this and not be unduly antagonistic or argumentative!

I believe most of the people on these forums are here because they actually love ESO, tempers can run high and arguments can happen BUT in this thread we are talking about the people who make and run this game, times are rough for them at the moment and they deserve our respect, for a job well done given the pressures upon them!

I really wasn't too surprised by the video. I had suspected as much.

And I came here years ago because the very same thing happened to another long running MMO

I really, really hope ZOS is able to re-hire some of the devs from the Blackbird team back into ESO. They had some of their best people on that project, the ones who helped build ESO into what it is today.

It'd be a shame to see them go, especially when the studio didn't want them to.

My other huge concern is for the devs who were working on both projects. The loss of that institutional talent and knowledge will mean that the remaining devs will have a harder time adjusting and making things run smoothly.

It's what best for the health of ESO, the success of ZOS, and TES as a whole.

Marto wrote: »

I really, really hope ZOS is able to re-hire some of the devs from the Blackbird team back into ESO. They had some of their best people on that project, the ones who helped build ESO into what it is today.

It'd be a shame to see them go, especially when the studio didn't want them to.

My other huge concern is for the devs who were working on both projects. The loss of that institutional talent and knowledge will mean that the remaining devs will have a harder time adjusting and making things run smoothly.

It's what best for the health of ESO, the success of ZOS, and TES as a whole.

One of the big ones we lost with Blackbird is a lore master for ESO. He had moved to Blackbird but he was still doing some occasional help with ESO as recently as Necrom and Gold Road. He was excellent. You can find more information on the UESP wiki. One of the few people who have said something publicly.

ArchMikem wrote: »

It's an incredible pity that Zenimax didn't/couldnt go private, instead of being acquired by Microsoft.

They were private. They were never a publicly traded company. Bethesda became Zenimax Media after an influx of funds from investors, a process that would be ongoing. We're talking hundreds of millions of dollars. That's how they were able to make such great games in the first place, including ESO, and buy other studios. Those investors ultimately wanted a return. They got that when Microsoft bought Zenimax.

This is normal stuff in the game biz and the entertainment industry. I don't want to sound insensitive because of course I feel awful for anyone who loses their job. But what Microsoft is doing isn't inherently evil. Like Zenimax Media, they answer to their stakeholders. This is all par for the course in the entertainment industry.

We're never going to hear a balanced view of it from the press because Microsoft won't share their justifications beyond what they've already shared. Microsoft paid a lot for Zenimax and what they do with it is entirely their prerogative. Obviously they believe this is the best course of action for their business.

Very likely the decision to to downsize ESO's development team was made last year when it was determined the chapter model would end. ZOS was probably pushing Blackbird hard so they could transition staff to avoid layoffs. It's pretty clear to be ESO entered a new phase of its existence this year, regardless of the outcome of that.

This isn't just a Microsoft thing. The gaming business has been in an upheaval for a while now. Long term economic forecasts are grim. We're at a turning point in history right now. Big media companies are trying to get ahead of what's coming. And frankly, we all should. It's time to control what one can.

Desiato wrote: »

This isn't just a Microsoft thing. The gaming business has been in an upheaval for a while now.

Microsoft said they had their most profitable time ever and that the projects were excellent. Poor performance is in no way the reason for the layoffs. Phil Spencer actually had to be pried away from Blackbird and the play testers thought it was going to be a big thing and was one of the most fun and positively viewed multiplayer games in ages. There was really no reason for Zenimax to see this coming. They were completely blindsided because they were doing incredibly well.

My personal theory as a total outsider looking in is that Microsoft is doing this because they think the future is AI and they're trying to get ahead of it so they'll be in a good position a few years from now. Nothing to do with current sales.

Desiato wrote: »

spartaxoxo wrote: »

Desiato wrote: »

This isn't just a Microsoft thing. The gaming business has been in an upheaval for a while now.

Microsoft said they had their most profitable time ever and that the projects were excellent. Poor performance is in no way the reason for the layoffs. Phil Spencer actually had to be pried away from Blackbird and the play testers thought it was going to be a big thing and was one of the most fun and positively viewed multiplayer games in ages. There was really no reason for Zenimax to see this coming. They were completely blindsided because they were doing incredibly well.

My personal theory as a total outsider looking in is that Microsoft is doing this because they think the future is AI and they're trying to get ahead of it so they'll be in a good position a few years from now. Nothing to do with current sales.

If Microsoft felt Blackbird would be successful, they wouldn't have cancelled it, regardless of that anecdote. It wasn't the game he was playing, it was a demo. It wasn't close to ready.

Like I said, it's not about what's here but about what's coming. But regardless, the writing was on the wall for ESO when they decided there wouldn't be chapters anymore, regardless of the outcome with Blackbird.

And yes, machine learning will affect every aspect of the software and entertainment industries. Just like computer graphics disrupted the conventional special effects industry and the phonograph disrupted the player piano industry.

They explicitly stated it wasn't about success of the projects and even noted it was some of the most profitable the gaming part of their company has ever been. So, no. We don't know why they decided to cancel but we do know that it was not because they thought Blackbird would not be profitable.

They explicitly stated that the layoffs were about positioning themselves for the future of gaming. They didn't elaborate on that, as far as I saw. But it comes alongside a push for integrating AI into games. They even showcased a theoretical AI assistant for Overwatch recently.

ETA 2

From Google

Microsoft's recent layoffs, impacting approximately 9,000 employees globally, are part of a broader restructuring strategy aimed at increasing efficiency and focusing on areas with the greatest growth potential. While not explicitly stated to be solely about "existing properties," the company's messaging highlights streamlining operations and concentrating resources on key strategic areas, particularly in cloud computing and Artificial Intelligence (AI).

From Business Insider

Executives previously told BI that those layoffs were intended to reduce the number of middle managers and increase the ratio of coders to non-coders on projects as Microsoft aimed to grow its "span of control," or the number of employees who report to each manager. But those cuts also ended up including many individual-contributor-level engineers. A spokesperson told BI at the time that those cuts were not performance-driven.

Desiato wrote: »

If they thought Blackbird would be successful, of course they would not have shot themselves in the foot by cancelling it.

They would if they want to pivot away from new IP because they think that it's not the future of gaming. They cut down on the amount of new IP they were willing to do as a general business strategy. They actually thought Blackbird was very promising until they decided to move away from new IP and directly communicated as such. This is one of the reasons it was so shocking that the project was suddenly scrapped. This was not a project that was flailing. Multiple new projects were suddenly shuttered. It is not just Blackbird.

Again, they expressly communicated that the decisions were not performance driven. It is about their overall strategy as a business to better position themselves in the future.