The latest studio to emerge from a team of former ZeniMax Online Studios employees is Eighth Lantern Studios. What is more interesting about the new entrant is that it was formed using a model widely advocated since the start of mass layoffs in the game industry.
In July 2025, Microsoft laid off hundreds of employees from its gaming division. Since then, impacted developers from Zenimax Online Studios have been teaming up to create new studios. Sackbird Studios was announced in October 2025, and the following month saw the birth of Ironroot Games.
After the layoff and the cancellation of Project Blackbird, Gabriel Sheets, who had worked with Zenimax for four years as Lead Encounter Designer, teamed up with like-minded developers who were also impacted and started working on a game in Unreal Engine.
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The goal was to keep their skill sharp and improve their proficiency with Unreal Engine, while looking for new roles. However, if the prototype they were building “had legs”, they would try to get funding to “build it for real”.
“Well, it turns out we all fell in love with the project, and not only that, we’re certain that it’s something worth sharing with the rest of the world,” the studio said.
“So, here we are. At this point, many of the people who started this with us have had to leave, but we’re pushing forward with a skeleton crew that even now is still packed with talent and decades of industry experience.”
Eighth Lantern Studios is located in San Diego, California. Although the studio has officially not revealed its team members, GameBaba Universe has found people who play different roles in the studio as follows:
- Gabriel Sheets – Founder
- Seth Stockholm – 3D Animator
- Jerome Hutson II – Game Designer
- Matthew Brunhofer – Production Support
“At Eighth Lantern Studios, our mission is to combine our AAA experience with fresh ideas to make games that give players a reason to laugh and just have fun with their friends,” said Sheets. “So, kinda like a finely-tuned gameplay whoopee cushion: timeless, endlessly replayable, and fun for all ages.”
What are your expectations for Eighth Lantern Studios and other studios founded by ex-Zenimax Online teams? Share your thoughts in the comment section.
