Ubisoft to Close XDefiant in 2025, Reducing Workforce by Half
Ubisoft to Shut Down XDefiant by 2025
Ubisoft announced Tuesday that it will be shutting down its free-to-play shooter, XDefiant. The game’s servers will remain online until June 3, 2025, but it will no longer be available for download, and new player registrations are closed. Despite this, Ubisoft plans to release XDefiant’s third-season content in the near future.
Layoffs and Team Reassignments
Nearly 300 employees will be affected by the shutdown, with 143 layoffs in Ubisoft’s San Francisco office and 134 across its Osaka and Sydney studios. The remaining half of the XDefiant team will transition to other roles within Ubisoft, as stated by chief studios and portfolio officer Marie-Sophie de Waubert.
Reasons for Shutdown
“Despite an encouraging start, passionate team efforts, and a dedicated fan base, we couldn’t attract and retain enough players to meet our competitive goals in the demanding free-to-play FPS market,” de Waubert explained in a notice. She noted that the game was far from achieving the results necessary to justify further investment.
Initial Success and Decline
Released in May 2023 after its 2021 announcement, XDefiant initially gained traction, reportedly reaching 1 million players within hours of launch. However, no official player or revenue data was shared. Ubisoft CEO Yves Guillemot later admitted during a September investor call that the game had not met expectations. In October, XDefiant executive producer Mark Rubin acknowledged declining numbers, attributing them to limited marketing efforts aimed at improving the game before ramping up promotion.
Refunds for Players
Players who purchased the $69.99 Ultimate Founder’s Pack will receive a full refund automatically, as will those who made purchases within the last 30 days. Refunds are expected within eight weeks, although Founder’s Pack and Founder’s Pack Elite purchases are excluded, according to Ubisoft’s FAQ.
Studio Closures
Alongside the layoffs, Ubisoft will close its production studios in San Francisco and Osaka. A skeleton crew will maintain XDefiant servers until the game’s final closure in 2025.
Ubisoft’s Broader Strategy
In its October earnings report, Ubisoft noted a nearly 20% decline in overall sales but highlighted improved engagement metrics for its games. The company has reduced its workforce by over 2,000 employees in the past two years and continues to focus on games-as-a-service titles like Rainbow Six, The Crew, and For Honor as core pillars of its strategy.
