Ubisoft has announced the cessation of development for its free-to-play shooter XDefiant. The decision, revealed on Wednesday, comes after the game’s launch in May, which followed several delays and playtests. Despite an initial surge in player numbers, the title has struggled to maintain a robust user base, prompting the publisher to also close its San Francisco and Osaka studios and reduce operations at its Sydney facility, affecting a total of 277 jobs. XDefiant’s servers will remain operational until June 3, 2025, according to the company.
Ubisoft to Phase Out XDefiant
The publisher confirmed that new downloads, player registrations, and in-game purchases for XDefiant have been halted. Nevertheless, the content for Season 3 is still set to launch as scheduled before the game’s sunset next June.
“Despite a promising start, the dedicated efforts of the development team, and the support from our community, we have been unable to attract and retain a sufficient number of players to meet our goals in the competitive free-to-play FPS market,” Ubisoft stated in an announcement shared internally.
“This means that, effective immediately, new downloads, registrations, and transactions will be disabled. However, Season 3 will proceed as planned, and we will keep the servers active until June 3, 2025, in recognition of our developers’ hard work and our players’ loyalty,” the company added.
Mark Rubin, executive producer of XDefiant, also communicated the game’s impending shutdown via a post on X, pledging full refunds to players who purchased the Ultimate Founder’s Pack. “Players who made purchases within the last month will receive automatic refunds within approximately eight weeks. More details can be found on our official website, http://XDefiant.com,” Rubin noted.
Hello XDefiant Fans,
I am unfortunately here today to announce that XDefiant will be shutting down.
Starting today (December 3, 2024), new downloads and player registrations will no longer be available. We will still release our Season 3 content in the near future (exact date…
— Mark Rubin (@PixelsofMark) December 3, 2024
Studio Closures and Job Cuts
With the discontinuation of XDefiant, Ubisoft plans to transition nearly half of the global development team into other roles within the company. However, the decision will lead to the closure of Ubisoft’s San Francisco and Osaka studios and a reduction in activities at the Sydney site. The layoffs will likely affect 143 employees in San Francisco, with an additional 134 positions at risk in Osaka and Sydney.
Marie-Sophie de Waubert, Ubisoft’s chief studios and portfolio officer, expressed gratitude to departing team members for their contributions and reiterated the company’s commitment to assisting them during this transition.
Despite the setbacks, Ubisoft remains committed to live service titles, referring to them as a “pillar of our strategy.” The company pointed to the successes of its other ongoing games, such as Rainbow Six, The Crew, and For Honor. “We will take the lessons gleaned from XDefiant into our future live projects,” Ubisoft affirmed.
XDefiant was introduced in 2021 for PC and consoles as a fast-paced 6v6 arena shooter that incorporated faction-based gameplay elements. Initially positioned as a Tom Clancy universe title, the game later transitioned to the Ubisoft Originals branding. It underwent closed beta testing in April 2023, with early impressions labeling it a “lukewarm experience.”
Although XDefiant launched on May 21, 2024, and initially attracted over a million players shortly after release, sustaining player interest proved difficult in a crowded first-person shooter market.
Ubisoft Faces Challenges in 2024
The discontinuation of XDefiant marks a challenging period for Ubisoft, which has seen its market value decline by more than 50% this year. The company’s shares have dropped approximately 40% in 2024, with its market capitalization now at around EUR 1.8 billion (approximately Rs. 16,577 crore). In September, stock prices hit a decade-low after the company revised its financial forecasts for FY 2024-25 due to lower-than-expected sales of Star Wars Outlaws and a delay in launching Assassin’s Creed Shadows.
Following reports in October that Tencent Holdings, which held a 9.2% stake in Ubisoft’s voting rights, and the founding Guillemot family were exploring options for a potential buyout, Ubisoft disclosed it routinely assesses its strategic alternatives.
