The Division Dev Announces Layoffs, 2nd Ubisoft Studio To “Restructure” After Tencent Investment

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Tencent Deal Puts Rest of the Studios' Future Hanging!

Story Highlight
  • Massive Entertainment, developer of The Division, has announced it’s laying off some staff.
  • This is the second studio to go through restructuring following Ubisoft’s partnership with Tecncent.
  • Massive Entertainment is still committed to The Division 3, which is in development.

Ubisoft is responsible for some of the most important video games in the medium’s history, but the French publisher is far from its peak currently. The stock price of the company has fallen 90% in just 5 years, and the situation was so dire that Tencent had to invest to give Ubisoft a future.

The gaming giant has handed over control of its biggest IPs to Tencent and has been restructuring its own studios to decrease expenditure. And, unfortunately, another developer under the belt of Ubisoft has announced layoffs

Why This Matters: One of the biggest game publishers firing employees of two studios in one day is a bleak reflection of the industry.

Ubisoft Massive
Massive Entertainment’s statement on X.

Massive Entertainment, developer of The Division games and Star Wars Outlaws, published a statement on social media that it is going to lay off staff for long-term planning and to ensure its focus on The Division franchise.

In a statement, the studio said it will offer a career transition program to employees who have been fired, along with a package that includes financial assistance. And, despite this realignment of resources, Massive Entertainment is committed to delivering great experiences for gamers playing The Division titles.

The Division 3 was also mentioned in the statement, with the studio saying it’s committed to the project and will share more in the future. Hopefully, the title will not face the same fate as Division Heartlands, the free-to-play game in the franchise that was eventually canned.

Star Wars Outlaws is a total mess (Image by Ubisoft)
The Studio’s Last Release Was A Major Flop

Massive Entertainment is also the second Ubisoft developer to confirm layoffs today, with the company’s Redlynx studio also cutting 60 jobs as it has shifted focus to small screens. This is part of the French publisher’s aim to reduce costs and improve efficiency so it can achieve sustainable success.

Following the Tencent partnership, the majority of Ubisoft employees were also concerned about their future at the company, stating that they felt excluded and unsafe. Their worst fear has come true, as the publisher has laid off employees on three different occasions since then.

Do you think Ubisoft can regain its former glory? Tell us in the comments below or head to the Tech4Gamers forum for discussion.

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