Ubisoft just lately made the stunning announcement that it might shut down its Call of Duty competitor, XDefiant, shut Ubisoft San Francisco, and lay off almost 300 individuals in what was simply the newest unlucky improvement for the individuals who make video video games on this enterprise. Now, inner memos from CEO Yves Guillemot and chief studios boss Marie-Sophie de Waubert have emerged.
Guillemot mentioned in a memo obtained by Insider Gaming that the choice to cancel XDefiant, shut Ubisoft San Francisco and Osaka, and ramp down its Sydney workplace was “among the many most tough selections we have needed to make.” Guillemot praised the XDefiant improvement crew and its ambition to “problem one of the best shooter available on the market.” Nevertheless, “it was not sufficient,” he admitted.
For these being laid off, Guillemot mentioned he expresses his “deepest gratitude” and that the corporate will do “all the pieces doable” to assist affected staffers.
Guillemot went on to say Ubisoft is certainly going by way of “turbulent occasions,” including that he’s working together with his government crew to search out the “finest options so we are able to keep management of our future.” When Ubisoft’s inventory value started to tank earlier this 12 months, some theorized the decrease firm worth may make the corporate an acquisition goal.
In October, a report claimed Ubisoft was speaking to Tencent about all method of choices, together with turning Ubisoft personal or having Tencent purchase the corporate. Nothing has materialized from this as of but, however Guillemot’s wording about having the ability to “keep management of our future” suggests one thing could also be afoot, or maybe it doesn’t suggest that in any respect.
“I am doing all the pieces I can to assist us regain momentum, in order that we are able to proceed to make Ubisoft a key participant in our trade, a creator identified for its distinctive and distinctive video video games,” Guillemot mentioned in his memo to employees.
As for the memo to employees despatched by Marie-Sophie de Waubert, it was published on Ubisoft’s own public website and shed some further mild on what occurred with XDefiant. She mentioned the sport had an “encouraging begin” however didn’t “appeal to and retain” sufficient gamers.
“The sport is just too distant from reaching the outcomes required to allow additional vital funding, and we’re saying that we are going to be sunsetting it,” she mentioned.
The manager went on to say that Ubisoft’s lack of success with XDefiant doesn’t suggest the corporate will cease pursuing games-as-a-service titles. In reality, she mentioned games-as-a-service stays “a pillar of of technique,” citing examples of success like Rainbow Six, The Crew, and For Honor.
“It is a extremely aggressive market, and we’ll apply the teachings discovered with XDefiant to our future dwell titles,” she mentioned.
XDefiant was developed by Ubisoft San Francisco, and about half of the builders are shifting to different initiatives inside Ubisoft on account of the sport’s shutdown. The sport was produced by Call of Duty veteran Mark Rubin and launched in Could, attracting plenty of gamers proper out of the gate. The momentum couldn’t be sustained, nonetheless. On October 15, Rubin responded to claims that XDefiant would shut down after Season 4, saying there have been no plans to do that and in fact, he was already planning content for the game’s second year.
De Waubert additionally teased bigger, structural adjustments coming to Ubisoft sooner or later within the areas of manufacturing and enterprise practices. Guillemot, for his half, mentioned in his memo that Ubisoft will attempt to have “fewer pointless processes” so its employees can focus extra on making video games.
These newest layoffs at Ubisoft come after a beforehand introduced cost-cutting program that already resulted in additional than 1,000 layoffs on the firm.