In 2025, Microsoft conducted massive layoffs, firing over 9,000 people across the company, including the gaming division. Many studios were affected: The Initiative was completely shut down, and ZeniMax Online, King, and Rare faced significant layoffs and project cancellations. The cancellation of Project Blackbird, an ambitious MMORPG that was being developed at ZeniMax Online, was particularly painful. At the time, employees called these layoffs "inhumane" and "disgusting."
Former ZeniMax Online developers have united to create the independent studio Ironroot Games, the second team to emerge after those events (the first was Sackbird Studios, announced in October 2025).
In an interview with GamesIndustry.biz, Ironroot Games CEO and Creative Director Quentin Cobb (formerly Lead Game Designer at ZeniMax Online) spoke about how painful the layoff experience was.
I thought things were going well. It's hard when your identity is so tied to your job, and then it all just gets flushed down the toilet. I worked there for almost five years. It all disappeared. It was a shock, honestly – extremely traumatic. Many still haven't recovered from that day. "Stunned" is an understatement. It was a tough day that I will never forget.
Cobb also stated that he intends to implement maximum transparency in matters of pay and profit sharing.
Usually in corporate America, directors and top management take a huge share of the income, and the team gets crumbs. It's demotivating. I strongly believe that those who make the game should get the money that the game brings in – period.
While the studio is keeping the details of its first project a secret, it is already known that it is a small-budget game that the team is developing slowly, as some employees work part-time.