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Speaking to multiple sources familiar with the project, IGN has learned that Blackbird was to be a new, sci-fi IP. Though it had been in development since 2018, the length of time it was taking to make the game was expected, as ZeniMax was building an entirely new game engine for it.

In the last year, sources tell IGN that pre-production was going well, and the team was actively ramping up in the hope of moving into full production soon. Xbox had approved the scaling up, and some individuals were being moved onto the project from other teams such as The Elder Scrolls Online, as well as some people absorbed from the shuttering last year of Arkane Austin.

One source recalled being told last year by head of Xbox Game Studios Matt Booty in a meeting that Xbox's closures of Arkane Austin, Tango Gameworks, and Alpha Dog Games were done for the purpose of justifying increased headcount for other game studios that needed it, including ZeniMax Online Studios.

The Elder Scrolls Online Dev's Unannounced MMO Was Doing Well and Even Scaling Up as Xbox Cancelation Blindsided Staff, Sources Say - IGN

Rebekah Valentine: "everyone's already said everything about how bad it sucks ass to get laid off in any situation, but in particular when you're making a cool thing that seems to be going pretty well. really feel for everyone impacted by everything, and for this team that just got obliterated out of the blue." — Bluesky