According to Insider Gaming, Mark Rubin, a key figure in XDefiant’s development, has officially confirmed that the game will be shutting down in June 2025.

Ubisoft has confirmed that XDefiant will be shutting down in June 2025, as revealed by multiple sources. The announcement was made during an internal all-hands meeting, with the decision attributed to a combination of low player engagement and disappointing spending trends.

The closure will have a major impact on the development team, particularly at Ubisoft’s San Francisco studio and its supporting locations. Several staff members have already been informed about severance packages, and further layoffs are expected in February 2025. Ubisoft San Francisco and Osaka will be closing, resulting in approximately 170-180 job losses.

Season 3 will be the final full season of XDefiant, and after that, only a skeleton crew will remain to maintain the game until its official shutdown in June 2025. Ubisoft has indicated that players will receive updates on how refunds for cosmetic items and other purchases will be handled in the coming months.

According to Insider Gaming, XDefiant faced significant challenges almost immediately after the release of Season 1, struggling with a lack of player spending. The team was forced to make cost-cutting measures to stay afloat, but the game’s future remained uncertain. Despite an initial strong player base, XDefiant began to show signs of decline, a situation that was exacerbated by frustrations within the studio.

In August 2024, Insider Gaming reported that the game was on borrowed time, and sources within the studio pointed to poor leadership as a key factor in the game’s downfall. There were consistent concerns about the lack of accountability from the leadership team, with some claiming that a better studio culture could have helped prevent the game’s failure.

In late March 2024, reports surfaced about a toxic work culture at the studio, with an internal investigation being conducted. However, despite the investigation concluding last month, insiders indicated that the underlying issues were never truly addressed, leaving the studio’s problems unresolved.