In a move that marks the end of Ubisoft’s ambitious shooter project, XDefiant will officially be shutting down by June 2025. According to Insider-Gaming, the decision was announced during an internal all-hands meeting, citing poor player numbers and insufficient player spending as the primary reasons for sunsetting the game.
This development has far-reaching implications, with Ubisoft confirming significant layoffs at its San Francisco and Osaka studios. Reports indicate that 170-180 employees will be impacted, with severance packages already issued to some staff. The first wave of layoffs has begun, with another anticipated in February 2025, as Ubisoft San Francisco and Osaka prepare to close their doors permanently.
Season 3 will be the final full content cycle for XDefiant, with only a small team maintaining the game until its official shutdown. Ubisoft has also assured players that details on refunds for cosmetic items and other in-game purchases will be shared at a later date.
XDefiant initially garnered attention with strong player numbers upon its launch. However, by Season 1, the game was struggling to retain players and generate revenue. Efforts to reduce costs within the studio were ultimately insufficient to salvage the project.
The closure also shines a spotlight on deeper issues within Ubisoft’s development culture. Insider reports from August 2024 suggested that XDefiant was already facing a grim future despite its initial success. Frustrations among employees were reportedly aimed at studio leadership, who were accused of failing to address the project’s shortcomings.
Compounding these challenges was the revelation of a toxic work culture within the San Francisco studio. An internal investigation launched earlier in 2024 reportedly concluded last month, but sources indicate that the findings were swept under the rug, leaving the underlying issues unresolved.
This chapter in Ubisoft’s history serves as a cautionary tale of missed opportunities, cultural missteps, and the importance of player engagement in sustaining live-service games. As the industry reflects on XDefiant’s fate, many will look to how Ubisoft addresses these issues moving forward.
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