Ubisoft Shuts Down XDefiant and Closes Studios in San Francisco and Osaka

Ubisoft is discontinuing its free-to-play shooter XDefiant and is closing its production facilities in San Francisco and Osaka. Additionally, another team in Sydney is undergoing a “ramp down” process.

In a communication to investors, the French firm stated that XDefiant is being discontinued after a “comprehensive evaluation of the game’s performance, profitability, and market circumstances.” Ubisoft also indicated that it will now be more discerning in its R&D investments.

XDefiant was launched on May 21, 2024. It will remain operational and entirely playable until June 3, 2025.

In a distinct announcement to players, Ubisoft clarified that it has commenced the sunsetting process, meaning new downloads, player sign-ups, and purchases are currently prohibited.

The company still intends to release Season 3 of XDefiant, but significant refunds will be provided to players who acquired the Last Founders Pack and made other in-game currency and DLC purchases after November 3, 2024.

Ubisoft retains confidence in games-as-a-service models despite the failure of XDefiant

The closure will result in a significant portion of the XDefiant team being reassigned to other positions within Ubisoft. A total of 277 people are expected to leave the company due to the aforementioned studio closures.

“This decision also results in the closure of our San Francisco and Osaka production studios and the scaling back of our Sydney production site, affecting 143 employees in San Francisco and 134 in Osaka and Sydney,” stated the company.

While Ubisoft is removing XDefiant and affecting jobs and studios due to the closure, the company emphasized that the games-as-a-service model remains a “key pillar” of its strategy.

It pointed to “notable successes” such as Rainbow Six, The Crew, and For Honor as evidence that the model can deliver results, but indicated XDefiant simply did not manage to attract a sufficient player base to be sustainable in the freemium shooter market.

“Although XDefiant sparked initial enthusiasm, it did not maintain a large enough player base to establish itself as a viable contender in the free-to-play first-person shooter genre or to justify ongoing investment in its development,” the company remarked. “Ubisoft will apply the insights gained from XDefiant to inform its future free-to-play projects.”

Ubisoft affirmed its commitment to developing a “robust collection of proprietary IPs” to ensure long-term value for its stakeholders.

About the Author