Ubisoft is closing XDefiant and several other studios, impacting around 277 employees.

Disappointing developments for the enthusiasts of XDefiant and Ubisoft employees this evening: The game will be permanently shut down, leading to the layoff of several hundred Ubisoft workers.

Ubisoft announced the heartbreaking news earlier today: “We express our sincere appreciation and gratitude for your unwavering support and engagement with XDEFIANT. Regrettably, we are commencing the sunset process from today, December 3rd, 2024. Consequently, new downloads, player registrations, and purchases will be discontinued. Season 3 will proceed as planned, so anticipate further updates. Despite these changes, the servers will stay active, and the game will remain fully playable until June 3rd, 2025.”

Players who purchased the Ultimate Founders Packs, DLC, and cash-shop coins will receive reimbursements via an automated process that could take up to eight weeks.

XDefiant’s executive producer, Mark Rubin, hinted in a distinct message to players that the game development extended too long. “Free-to-play, particularly, is a prolonged journey,” he stated. “Numerous free-to-play games require considerable time to establish their footing and turn a profit. Ubisoft and its teams were committed to this journey till very recently. Unfortunately, it became unfeasible to continue.”

The discontinuation of XDefiant doesn’t come as a shock; Mark Rubin addressed the speculations that the game was spiraling down in a developer blog last September. He dismissed the rumors that Ubisoft had imposed a turnaround deadline by November. Clearly, these speculations have proven to be true.

The effect extends beyond just a single game. Stephen Totilo from Game File mentioned that Ubisoft isn’t just pulling the plug on one game. It’s closing down production studios in San Francisco and Osaka, “downsizing” the team in Sydney, and laying off up to 277 employees in total. A portion of the XDefiant team will reportedly be reassigned to different roles within the company.

These are not the first layoffs from Ubisoft in 2024, as the company has been grappling with multiple issues, including several rounds of layoffs as well as the failed launch of AI technology and NFT-related/Web3 games. They have also had to deal with backlash from canceling a Division spinoff, discontinuing The Crew 1, promoting game preservation movements and defending against lawsuits. Furthermore, their return-to-office mandates were so poorly received that 700 employees went on a three-day strike. An executive from Ubisoft even controversially suggested that players should be okay with not owning their games, further adding to the year’s difficulties.