Ubisoft Is the Latest Victim of Gaming Industry Layoffs

The gaming industry has been no stranger to layoffs in recent years, with many companies forced to make difficult decisions to stay afloat in an increasingly competitive market. Despite being one of the biggest players in the industry, it seems that even Ubisoft is not immune to these challenges.

This week, the French gaming giant announced a new round of layoffs affecting multiple offices across the United States, leaving many fans wondering about the future of some of their favorite franchises.

The Division Series Takes Another Hit

One of the offices hit hardest by the recent layoffs was Ubisoft‘s Red Storm Entertainment studio in Cary, North Carolina. This news comes just months after the studio announced the cancellation of The Division: Heartland, a much-anticipated free-to-play spin-off of the popular Tom Clancy’s The Division series.

More industry layoff news: Ubisoft laid off 45 people from its San Francisco and North Carolina (Red Storm) offices this week, Bloomberg has learned. Earlier this year, Red Storm canceled a game based on Tom Clancy’s The Division. https://t.co/xAE08tP8xE

— Jason Schreier (@jasonschreier) August 16, 2024

According to Bloomberg, a spokesperson for the company stated:

“[a] difficult yet necessary decision was made to align these studios’ organizations with their future business and development objectives.”

However, for many fans of the looter-shooter series, this news is just another disappointment in a long line of setbacks.

Reactions have been a mix of sadness and frustration:

I hate seeing more and more developers lose their jobs.
In regard to The Division, I thought the Division 1 had a good setting and plenty of potential for a single player narrative. I wish we would’ve gotten that.

— MasonAGR (@MasonAGR) August 16, 2024

Some are even speculating about the future of Red Storm Entertainment:

surely Red Storm won’t be around much longer, right? hate to see all these Division projects being cancelled!!

— Steve (@ScubaSteve1219) August 16, 2024

With the cancellation of Heartland and now these layoffs, the future of The Division franchise seems uncertain. However, fans can take some solace in the fact that the third installment of the main series is (as of now) still being developed by Massive Entertainment.

Ubisoft’s Struggles and “Quad-A” Ambitions

The layoffs at the company come amidst a challenging time for the company, which has faced criticism for its handling of various controversies and its perceived anti-consumer practices. Some gamers have even taken to mocking CEO Yves Guillemot’s recent comments about “AAAA” games:

Hate to see layoffs, but when you have a tonedeaf company like Ubisoft and their anti-consumer practices, oh and a CEO that calls games quad-A, we can’t be surprised. @Ubisoft Outlaws and Shadows will be purchased at steep price drops, and I’m a big AC guy.

— Serge343 (@Capcom333) August 16, 2024

For context, Guillemot recently referred to the studio’s latest pirate game, Skull and Bones, as a “quadruple-A” title—a term that has since been widely ridiculed by the community. The comment has only added to the perception that Ubisoft is out of touch with its audience.

As the gaming industry continues to evolve and face new challenges, it remains to be seen how Ubisoft will navigate these difficult times. Will the company be able to turn things around and win back the trust and enthusiasm of its once-loyal fanbase?

Only time will tell, but one thing is for sure: these recent layoffs are a stark reminder of the human cost of the gaming industry’s ongoing struggles.

What do you think about the recent gaming layoffs and the cancellation of The Division: Heartland? Do you believe the company can turn things around, or are they headed for more trouble? Let us know your thoughts in the comments below!