XDefiant is shutting down as Ubisoft closes San Francisco and Osaka offices following "long journey" of free-to-play struggles, up to 177 devs impacted

Ubisoft has announced the "sunsetting" of its free-to-play first-person shooter XDefiant. Likewise, Ubisoft San Francisco and Ubisoft Osaka are shutting down while Ubisoft's Sydney office is ramping down.

XDefiant released back in May and reached a million unique players within just two and a half hours, a record for Ubisoft despite the game's middling reviews.

In August, rumors began to circulate that Ubisoft was planning to shut down the game following layoffs at its San Francisco office - where the majority of XDefiant developers worked. Unfortunately, that has now been confirmed with an official announcement from Ubisoft that cites XDefiant's free-to-play monetization structure as the primary cause.

Starting today, players won't be able to download or register to play XDefiant, and existing players won't be able to buy anything. Season 3 is still set to launch at an unknown date and servers will stay online until June 3rd, 2025. Refunds are being offered to anyone who bought the Ultimate Founders Pack and to all players who bought anything in-game within the last 30 days.

In an email obtained by IGN, Ubisoft chief studios and portfolio officer Marie-Sophie de Waubert broke the news to employees and revealed the studio closures, which will impact up to 177 developers.

"Despite an encouraging start, the team’s passionate work, and a committed fan base, we’ve not been able to attract and retain enough players in the long run to compete at the level we aim for in the very demanding free-to-play FPS market," said Waubert. "As a result, the game is too far away from reaching the results required to enable further significant investment, and we are announcing that we will be sunsetting it."

Despite this devastating news, Waubert told employees "developing Games-as-a-Service experiences remains a pillar of our strategy," and cited success including "Rainbow Six, The Crew, and For Honor." Waubert also said to employees that Ubisoft is "determined to take the necessary steps to put the company back on a path to growth, innovation and creativity and make sure we can set you up for success."

XDefiant creative director Mark Rubin also shared a personal message to Twitter, again listing free-to-play as the major factor in the game's closure.

"A few years ago, Ubisoft and the SF Dev team embarked on a bold adventure to develop a new arcade shooter called XDefiant," Rubin said. "It was from the start, an incredible challenge. Not only were we trying to shake up the genre by removing Skill-Based Matchmaking (SBMM) while bringing back a more 'old-school' arcade shooter experience, but we were also diving into the high-risk, high-reward realm of free-to-play. And for that I want to applaud not only the Dev team but also Ubisoft leadership for taking that chance!"

Rubin revealed that XDefiant was Ubisoft's fastest game to pass five million players and ultimately had over 15 million people playing.

"If there’s one thing, I hope we can all take away from this experience, it’s the importance of open, honest communication between developers and players," Rubin added. "This 'player-first' mentality along with respectful, non-toxic conversations between developers and players has been one of the standout differences that made XDefiant so special."

Meanwhile, Ubisoft recently killed "inaccurate rumors" around Assassin's Creed Animus Hub: rewards are "entirely free," no paid sub or battle pass, and "no extra cost" to missions.