Ubisoft has announced the shutdown of its live-service shooter, XDefiant, resulting in 277 layoffs as the company discontinues development across three production studios, according to an Insider Gaming report. The closures will take effect in June 2025, following inadequate player engagement since its launch in May 2024.
Ubisoft to shut down XDefiant, resulting in 277 layoffs
The decision to terminate XDefiant comes just a month and a half after Ubisoft publicly denied reports of a shutdown. The game’s development has been officially halted, according to Marie-Sophie de Waubert, Ubisoft’s Chief Studios and Portfolio Officer. She stated, “Despite an encouraging start,” the game couldn’t maintain sufficient player numbers to justify continued investment in a highly competitive free-to-play FPS market. Ubisoft’s move to sunset the game means new downloads, player registrations, and purchases will cease immediately. However, Season 3 is set to launch as planned, and servers will remain operational until June 3, 2025.
The impact of this termination extends beyond the game itself, affecting the company’s workforce. Ubisoft confirmed the closure of its San Francisco and Osaka production studios while scaling down operations in Sydney. The layoffs represent slightly over half of the XDefiant team’s total personnel, though some employees may have the opportunity to transition to other projects within the company. De Waubert expressed gratitude to departing staff, emphasizing Ubisoft’s commitment to supporting them during this transition.
Executive Producer Mark Rubin previously insisted there were “no plans” to shut down XDefiant, indicating confidence in the game’s long-term prospects. However, internal discussions soon revealed that poor player engagement and insufficient spending led to the decision to ultimately proceed with closure. A lack of resources and player retention became a significant obstacle for the team, which had hoped to build and sustain the game’s community.
Reports suggest a toxic work culture pervasive within the team, coupled with leadership frustrations that stifled the project’s potential. An internal investigation concluded several weeks ago, but employees indicated that the issues remained unaddressed. These organizational dynamics may have contributed to the struggles faced by XDefiant, compounding the fundamental challenges of sustaining a successful live-service title.
In the broader context, this closure mirrors a challenging period for Ubisoft, which has recently seen a slew of project cancellations and delays. The publisher’s emergency investor call earlier in 2023 revealed dramatically reduced earnings, prompting the cancellation of three unannounced titles and subsequent layoffs as part of a restructuring effort. Notably, the cancellation of The Division: Heartland came after three years of development, highlighting the increasing difficulties the company faces in managing its portfolio of titles.
Going forward, Ubisoft plans to maintain a small dedicated team to support XDefiant until its closure. Season 3 will deliver new content and experiences to players, despite the impending end of the game. Meanwhile, the company is preparing to address player concerns regarding refunds for cosmetic items and other purchases as part of the transition process.
Featured image credit: Ubisoft
