Ubisoft ends game development at Red Storm Entertainment, 105 jobs cut

Ubisoft has ended game development at Red Storm Entertainment, resulting in 105 job losses, according to VGC. The North Carolina-based studio, founded by Tom Clancy in 1996, will continue operating for global IT and Snowdrop engine support only, with all game developers made redundant Thursday.

A historic studio's legacy

Red Storm Entertainment holds a significant place in gaming history as the birthplace of two major Tom Clancy franchises. Founded by the bestselling author himself in 1996, the studio developed the original Rainbow Six and Ghost Recon games, transforming Clancy's military fiction into interactive experiences.

After Ubisoft acquired Red Storm in 2000, the studio continued developing sequels including Ghost Recon: Advanced Warfighter in 2006. However, modern stewardship of Tom Clancy titles has shifted to other Ubisoft studios — Massive Entertainment handles The Division, Montreal manages Rainbow Six Siege, Paris develops Ghost Recon Wildlands, and Toronto is working on the Splinter Cell remake.

In recent years, Red Storm pivoted to VR development, creating titles like Werewolves Within (2016), Star Trek: Bridge Crew (2017), and Assassin's Creed Nexus VR (2023). Their most recent project, the free-to-play The Division Heartland, was cancelled in 2024 following public testing phases.

What this means for Ubisoft's restructuring

According to sources familiar with the matter, Red Storm's closure reflects Ubisoft's broader cost-cutting strategy aimed at reducing fixed costs by €200 million over the next two years. This 'major reset' has already resulted in the cancellation of six games and postponement of seven others.

The restructuring extends beyond Red Storm, with Ubisoft proposing up to 200 job cuts at its Paris headquarters — approximately 18% of staff. The company has also confirmed layoffs at its Toronto studio and implemented two other studio closures as part of this global efficiency drive.

Under the new structure, Ubisoft's creative teams will be reorganised into autonomous 'creative houses,' though details about how this affects Tom Clancy franchise development remain unclear. The timing suggests these changes prioritise live-service and established franchises over smaller experimental projects.

Impact on Tom Clancy franchises

Red Storm's closure raises questions about the future direction of Tom Clancy games, though active franchises remain in development at other Ubisoft studios. Rainbow Six Siege continues receiving updates from Montreal, while The Division franchise stays with Massive Entertainment in Sweden.

The studio's recent VR focus represented a departure from its tactical shooter roots, but the cancelled Division Heartland suggested a potential return to the franchise that helped define modern Tom Clancy gaming. With Red Storm's closure, that avenue appears permanently sealed.

For context, Tom Clancy franchises have generated billions in revenue for Ubisoft since the company's 2000 acquisition of Red Storm. The original Rainbow Six alone spawned numerous sequels and spin-offs, establishing tactical gameplay mechanics still seen in modern entries.

Frequently Asked Questions

What happened to Red Storm Entertainment?

Ubisoft ended all game development at Red Storm Entertainment, laying off 105 developers. The studio will continue operating for global IT and Snowdrop engine support only.

Why is Ubisoft ending game development at Red Storm?

This decision is part of Ubisoft's global cost-saving plan to reduce fixed costs by €200 million over two years. The company is restructuring operations and has cancelled six games while postponing seven others.

How many jobs were lost at Red Storm Entertainment?

105 game development positions were made redundant at Red Storm Entertainment. All developers were affected, though IT and engine support staff will remain.

What notable games did Red Storm Entertainment develop?

Red Storm created the original Rainbow Six and Ghost Recon games for Tom Clancy. More recently, they developed VR titles including Werewolves Within, Star Trek: Bridge Crew, and Assassin's Creed Nexus VR.

Will Tom Clancy games continue without Red Storm?

Yes, other Ubisoft studios handle Tom Clancy franchises. Montreal develops Rainbow Six Siege, Massive Entertainment manages The Division, and Toronto is working on the Splinter Cell remake.

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