It's been a tough year for the games industry with multiple studio closures and layoffs, and now as we enter December, Ubisoft continues the trend.
As highlighted by Game File reporter Stephen Totilo, Ubisoft is shutting down its San Francisco production studio and Osaka, Japan office. It will also be "ramping down" its production team located in Sydney, Australia. The total employee cuts are expected to be around "277" people.
As part of this, Ubisoft is ending services for its free-to-play shooter XDefiant, with the servers for the game shutting down on 3rd June 2025. This particular game, led by Ubisoft San Francisco, launched earlier this year in May, and half of its team is now reportedly "moving to other projects" at Ubisoft.
"Ubisoft had hoped [the] game would compete with Call of Duty but recently was denying shutdown rumors amid declining playing numbers"
Apart from XDefiant, Ubisoft has released titles like Skull & Bones, Star Wars Outlaws and Prince of Persia: The Lost Crown in 2024. It's also got Assassin's Creed Shadows in the pipeline for 2025. Unfortunately, many of the titles it released this year have fallen short of certain targets.