Ubisoft cuts over 100 jobs, halts game development at Red Storm.

Ubisoft has just announced a shocking decision: to completely cease game development at Red Storm Entertainment studio – the name behind many popular franchises such as Rainbow Six and Ghost Recon .

Specifically, approximately 105 employees were laid off during this restructuring. The studio continues to exist, but it no longer develops games; instead, it has shifted to a technical support role.

What will Red Storm do after they stop making games?

Instead of developing new products, the rest of the team will handle behind-the-scenes tasks:

• Supports the Snowdrop engine (the technology used in The Division , Avatar , etc.).
• Internal IT work and technical support.
• Providing development support for other studios within Ubisoft.

This means Red Storm has officially lost its status as an independent game development studio.

What was the reason behind this decision?

This move is part of Ubisoft's larger 'reset' plan:

• Restructure the entire company into 'creative houses' (core creative teams).
• Cost-cutting aims to save hundreds of millions of dollars.
• Several projects were canceled, including Splinter Cell VR and The Division: Heartland.

In addition, many of Ubisoft's recent products have failed to meet expectations, forcing the company to downsize.

Red Storm – from legend to 'support studio'

Red Storm was founded in 1996, is associated with the name of writer Tom Clancy, and is considered the 'father' of the following game series:

• Rainbow Six
• Ghost Recon

However, over the past 10 years, the studio gradually shifted to supporting and developing VR games, before its game development division was completely discontinued.

+ Impact on the gaming industry

This is a clear indication that:

• Long-established studios can still be 'downgraded' if they no longer fit the strategy.
• Ubisoft is focusing on major brands and long-term service models.
• The trend of downsizing and restructuring continues to spread across the global gaming industry.