Ubisoft has decided to pull the plug on XDefiant, its free-to-play shooter, as announced this Tuesday. Although players can still access the servers until June 3, 2025, the game won’t be available for download anymore, and new registrations will be closed. Despite this, fans of XDefiant can look forward to the release of its third-season content in the near future. Unfortunately, this decision also leads to layoffs, with nearly 300 employees—143 based in San Francisco and 134 spread across Osaka and Sydney—facing job cuts. The remaining members of the XDefiant team are expected to transition to different positions within Ubisoft, according to the company’s chief studios and portfolio officer, Marie-Sophie de Waubert.
“Even with a promising start, the dedicated efforts of our team, and a loyal fan base, we couldn’t draw in and keep enough players for long-term competition in the fierce free-to-play FPS market,” de Waubert mentioned in a statement published on Ubisoft’s website. “This means the game falls short of achieving the results necessary for further significant investment, so we’re announcing its phase-out.”
With the closure of XDefiant and the subsequent layoffs, Ubisoft is also shutting down its production studios in San Francisco and Osaka. As Insider Gaming notes, a small team will maintain XDefiant’s operations until its ultimate shutdown.
For those who purchased the Ultimate Founder’s Pack at $69.99, Ubisoft is offering full automatic refunds, as detailed by XDefiant Executive Producer Mark Rubin in a community letter. Additionally, any purchases made in the 30 days preceding this announcement will be reimbursed, although the Founder’s Pack and Founder’s Pack Elite are not eligible for refunds, as per Ubisoft’s FAQ. Rubin assured players that they should receive their refunds within eight weeks.
XDefiant had its official release on May 21 this year, after its initial announcement in 2021. It appeared to be a hit at launch, drawing in a million players mere hours after going live, as reported by Insider Gaming. While official player or revenue numbers haven’t been disclosed, Ubisoft CEO Yves Guillemot revealed during a September investor call that the game fell short of expectations. In October, Rubin mentioned on X that the dip in numbers was partly due to “minimal marketing,” which aimed to “refine the game” before intensifying efforts to attract both new and returning players. He strongly denied any plans to discontinue XDefiant after its fourth season, responding to reports from Insider Gaming.
Ubisoft’s earnings report from late October showed a sales decline of nearly 20%, although engagement with its games improved. Over the past 24 months, the company reduced its workforce by more than 2,000, through a combination of layoffs and voluntary departures. As of September, Ubisoft’s workforce stands at 18,666 people, with the company indicating it is “on track” to continue cutting costs. Staff retention, however, remains robust, “close to historical levels.” Despite Star Wars Outlaws not performing as expected, Ubisoft remained silent about XDefiant’s status. An analyst even questioned Guillemot regarding the game’s dwindling numbers. At the time, Guillemot explained that while XDefiant was underperforming, their commitment to a games-as-a-service model remains pivotal. De Waubert reaffirmed this stance on Tuesday, emphasizing that games-as-a-service continues to be “a central pillar” of Ubisoft’s strategy, pointing to successes like Rainbow Six, The Crew, and For Honor.
