Ubisoft Reportedly Ends Game Development at Red Storm Entertainment

Two armored video game characters, one with a radio and the other aiming a rifle, focusing intently. The atmosphere is tense and action-packed.
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By Alexandria LopezStaff Writer

Two armored video game characters, one with a radio and the other aiming a rifle, focusing intently. The atmosphere is tense and action-packed.
  • Primary Subject: Red Storm Entertainment (Ubisoft Subsidiary)
  • Key Update: Ubisoft has reportedly shuttered the game development wing of the studio, laying off 105 employees and shifting focus to IT and engine support.
  • Status: Confirmed (Internal Announcement/Reported)
  • Last Verified: March 19, 2026
  • Quick Answer: Ubisoft is ending game development at Red Storm Entertainment, laying off 105 people. The studio will now pivot to supporting IT systems and the Snowdrop engine.

Ubisoft has reportedly shut down game development at Red Storm Entertainment, the studio that brought us Rainbow Six.

Red Storm was a studio under Ubisoft that brought us the beloved Tom Clancy franchise, as well as Ghost Recon and Freedom. Though they've seen major success throughout the years, they've recently had a few games in development cancelled and laid off 45 employees in August 2024.

Now, the studio is focusing on supporting Ubisoft's IT systems and the Snowdrop game engine. Here's everything we know.

Reports State Ubisoft Has Shut Down Game Development at Red Storm Entertainment

According to reports from IGN, Ubisoft is laying off a substantial number of staff members and cancelling game development at Red Storm Entertainment. Ubisoft reportedly released an internal announcement confirming the shutdown, with 105 employees to be let go.

First-person view of a tactical shooter game set in a kitchen with flames nearby. A character in protective gear lies on the floor, indicating action and tension.
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Credit: Ubisoft

Red Storm Entertainment was founded in 1996 and is slated to celebrate its 30th anniversary later this year. While it dropped successful games like Ghost Recon and the Rainbow Six titles, it faced several setbacks in recent years. In 2022, their VR Tom Clancy game was cancelled after being announced in 2020. In 2021, they announced they were working on a free-to-play spinoff of The Division, but it was cancelled in 2024.

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Though game development will shut down, the studio will remain open. However, its focus will shift to behind-the-scenes technical work.

This is the third bout of layoffs at Red Storm in recent years. In 2025, 19 people were terminated, and 45 positions were made redundant in 2024. With 105 people being let go following the end of their game development sector, this is a major drop in employees; in 2022 alone, they employed 180 people.

A video game screenshot showing a first-person shooter perspective in an office setting. Armed operators are in a tense firefight, with debris and a digital HUD overlay.
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Credit: Ubisoft

It appears Ubisoft is on a quest to reset its creative process. In January, Ubisoft cancelled the production of Prince of Persia: Sands of Time and shut down two studios, Ubisoft Stockholm and Ubisoft Halifax. There were also reported layoffs in Ubisoft Abu Dhabi, RedLynx, and Massive Entertainment.

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It was also recently reported that Ubisoft planned to make 200 roles redundant in its Paris headquarters.

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