San Francisco, USA – Ubisoft’s closure of XDefiant in June 2025 was announced during an internal meeting, citing dwindling player numbers and low player spending as reasons for the decision. The shutdown will result in layoffs affecting a substantial number of employees across the San Francisco studio and supporting studios, with severance information already shared with some staff. Further layoffs are anticipated in February, leading to the closure of Ubisoft San Francisco and Osaka, displacing around 170-180 employees.
The upcoming Season 3 will be the final season for XDefiant, with a small team in place to maintain the game until its eventual shutdown. Ubisoft plans to inform players of refunds for in-game purchases and cosmetic items at a later date. The title struggled after Season 1, grappling with financial challenges due to a lack of player spending.
Insider Gaming previously reported on XDefiant’s uncertain future amid internal frustrations focused on leadership accountability for the project’s shortcomings. The toxic work culture within the studio was highlighted in a report from March 2024, with subsequent investigations failing to address underlying issues effectively.
Mark Rubin, a key figure behind XDefiant, confirmed the game’s closure. Both current and former Ubisoft employees can reach out securely and anonymously for further insights on the company’s challenges. The closure of XDefiant adds to the company’s recent legal troubles, including a lawsuit over its return-to-office mandate.
For those interested in insider perspectives on the gaming industry, details on Ubisoft’s ongoing issues, and exclusive leaks, stay tuned for updates on the evolving situation.