For the past two years, massive game studios have laid off huge workforce sections, leaving thousands of dedicated creators unemployed. Recently, Ubisoft, a company that’s faced a severe drop in sales and reception, announced its latest wave of layoffs. This would leave hundreds unemployed and even shut down a UK-based studio. As bad as this news is, it’s only the latest of many huge shutdowns for the gaming industry. Furthermore, the company’s future has been thrown further into question. Here is a breakdown of why this is such big news.
Ubisoft’s Latest Shutdown
According to Insider Gaming, Ubisoft announced another wave of significant staff layoffs. Around 185 employees were laid off while their Leamington office in the UK was closed entirely. Furthermore, these layoffs affected other offices in Düsseldorf and Newcastle. A spokesperson said this was done to “reduce costs and ensure stability.” They claimed they would support their workforce after leaving. This office had worked on some of the company’s largest projects, such as Frontiers of Pandora and Far Cry 5.
While this is dire news for the company, it is hardly a surprise anymore. Nearly every AAA developer has laid off hundreds of employees for the past two years, leaving tens of thousands unemployed. Furthermore, many other studios were shuttered entirely, even acclaimed creators such as Hi-Fi Rush’s Tango Gameworks. With so many laid off over such a short period, the entire industry has been thrown into question. At worst, gaming could be heading towards another crash.
The Company’s Future
As sad as this closure is, it will be particularly bad for Ubisoft. Before the Leamington office, they closed their San Francisco and Osaka offices while laying off hundreds more. Furthermore, they recently announced that the live-service game XDefiant would have its final season and shut down after barely a year online due to poor sales.
Many other recent failures have also occurred. For example, games like Star Wars: Outlaws and Skull and Bones had poor sales despite their massive budgets. Additionally, their long-awaited game Assassin’s Creed Shadows was surrounded by controversies and sudden, massive delays. Since Assassin’s Creed became the company’s flagship, this is an especially bad omen.
While the company was once a respected juggernaut, its overreliance on massive, empty open worlds became stale for many gamers. The company is “exploring options,” such as selling to its founding Guillemot family or the Chinese gaming giant Tencent. In any event, Ubisoft is en route to becoming a fallen titan of the video game industry.
