Phil Spencer Impressed with Cancelled ZeniMax MMO

Phil Spencer, CEO of Microsoft Gaming, revealed that he was "amazed" by an MMO in development by ZeniMax Media that, unfortunately, was canceled. Spencer's statement raises questions about the criteria for project cancellations, especially after Microsoft acquired ZeniMax for US$ 7.5 billion in 2021. The news that a promising game was scrapped, coming from the head of the gaming division himself, is an indication that not every high-potential project survives corporate restructuring.

Spencer's revelation is particularly notable considering the recent wave of layoffs and studio closures, such as Arkane Austin and Tango Gameworks, under Microsoft's management.

Although Phil Spencer did not reveal the name of the canceled MMO, his admiration for the project suggests that it was a title with great potential. He described the game as something that "amazed" him, indicating that there was something special in its conception or initial execution. Cancelling an MMO is a decision of great significance, usually motivated by exorbitant development costs, market uncertainties, or production issues.

The decision to cancel a grand project like a ZeniMax MMO is even more significant when considering the context of the recent mass layoffs at Microsoft. In June 2025, the company announced the layoff of approximately 9,000 employees across its divisions, including Xbox and Activision Blizzard. Furthermore, in May 2024, studios like Arkane Austin (known for Prey) and Tango Gameworks (creator of the acclaimed Hi-Fi Rush) were closed, drawing comparisons of Microsoft to Electronic Arts (EA) for its post-acquisition studio closure practices.

The cancellation of ZeniMax's MMO fits into this pattern of decisions aimed at resource optimization and portfolio restructuring. However, the loss of a project that impressed even the CEO of Microsoft Gaming suggests that the cost of these restructurings may be the suppression of innovations and the loss of creative talents invested in these projects.