EntertainmentMassive Entertainment Hit with Layoffs by Ubisoft

Massive Entertainment Hit with Layoffs by Ubisoft

Key Takeaways

  • Ubisoft’s Massive Entertainment is undergoing a proposed organizational restructuring that could result in 55 job losses
  • The restructuring affects the Malmö and Stockholm studios and is focused on supporting the development of The Division franchise and other projects
  • Massive Entertainment will focus on The Division 3, Snowdrop engine, and Ubisoft Connect, as well as an unannounced innovative tech project
  • The restructuring is not related to individual performance or recent deliveries, but rather a forward-looking and structural change
  • Ubisoft is shifting towards a less centralized operating model to give creative teams more ownership of the brands they work on

Introduction to the Restructuring
Ubisoft has announced a proposed organizational restructuring at Massive Entertainment, the developer of The Division and Avatar games. This restructuring could result in 55 people losing their jobs and affects the Malmö and Stockholm studios. The move follows the completion of a Voluntary Leave Program launched last year and a finalized long-term roadmap, which has provided clearer visibility into the structure and capacity required to support the two studios’ work and sustainably over time. According to Ubisoft, the proposed changes are forward-looking and structural, and are not related to individual performance, recent deliveries, or the quality of the work produced by the teams.

The Division Franchise and Future Projects
Massive Entertainment’s focus going forward will be on The Division franchise, including the development of a third game and continued support for the second, as well as the Snowdrop engine and Ubisoft Connect. The Division 3 was announced in 2023, but nothing from the game has been shown publicly. Recently, executive producer Julian Gerighty claimed that The Division 3 will have "as big an impact as The Division 1." In addition to The Division, Massive is working on a game project focused on innovation and technology, which will be revealed at a future date. This project is expected to be a key part of the studio’s future plans and will be developed with a refined team setup.

The Restructuring Process
The proposed restructuring will begin with a focus on individual agreements, and impacted employees are being informed directly and supported with care and respect in line with local regulations. Ubisoft has stated that the long-term direction for the studios remains unchanged, and they will continue to serve as the global home and lead for The Division franchise, move forward with the unannounced innovative tech project, and play a central role in the development of Snowdrop and Ubisoft Connect. The company is committed to supporting its employees through this transition and is providing resources to help them navigate the changes.

Ubisoft’s Shifting Business Model
The Massive restructure comes amid a turbulent period for the Assassin’s Creed publisher, which late last year opened a new subsidiary part-owned by Tencent, Vantage Studios. Vantage Studios now oversees Rainbow Six, Assassin’s Creed, and Far Cry, and Tencent holds a 25% stake in the new subsidiary. Tencent will act in an advisory role, with final creative and business decisions resting with co-CEOs Christophe Derennes and Charlie Guillemot. Ubisoft claims it’s shifting towards a less centralized operating model, in an attempt to give creative teams more ownership of the brands they work on. This shift is expected to allow for more autonomy and flexibility in game development, and could lead to more innovative and successful games in the future.

Conclusion and Future Outlook
In conclusion, the proposed restructuring at Massive Entertainment is a significant change for the studio and could result in job losses. However, the focus on The Division franchise and other projects, such as the Snowdrop engine and Ubisoft Connect, is expected to drive the studio’s future success. The shift towards a less centralized operating model is also a key part of Ubisoft’s strategy, and could lead to more innovative and successful games in the future. As the gaming industry continues to evolve, it will be important for studios like Massive Entertainment to adapt and change in order to remain competitive. With a clear focus on its core franchises and a commitment to innovation and technology, Massive Entertainment is well-positioned for success in the years to come.

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