Ubisoft Closes Red Storm Entertainment, Lays Off 105 Developers, Shifts Studio to IT Support

For years, Red Storm Entertainment was synonymous with Tom Clancy’s tactical shooters. From the original Rainbow Six to the gritty Ghost Recon series, the North Carolina studio turned the author’s novels into some of the most respected games in the industry. But on March 19, 2026, Ubisoft announced that it would close the studio, lay off 105 developers, and repurpose the team to provide IT and engine support for its global studios.

The End of a Legendary Studio

Founded in 1996 by Tom Clancy himself, Red Storm quickly became the engine behind many of the franchise’s flagship titles. Ubisoft acquired the studio in 2000, expanding the Tom Clancy universe with new games based on the author’s books. The last Tom Clancy title produced by Red Storm was Ghost Recon: Future Soldier in 2012. In the decade that followed, the studio pivoted to virtual‑reality experiences such as Werewolves Within and Assassin’s Creed Nexus VR.

Despite its storied past, the studio’s future was uncertain. Two projects that had been in development—a VR spin‑off of Splinter Cell and a new entry in the The Division series called Heartland—were quietly cancelled before they reached the public eye. The decision to shut down Red Storm came as part of a broader cost‑saving initiative by Ubisoft.

What Happens to the Team and Projects

According to a source inside Ubisoft, all game‑development positions at Red Storm are being made redundant. The 105 developers who will be let go will receive severance packages and career‑transition assistance. Meanwhile, the studio’s remaining staff will focus on IT infrastructure and support for Ubisoft’s Snowdrop engine, which powers titles such as Assassin’s Creed Valhalla and Far Cry 6.

Key facts about the transition:

• Red Storm’s last game was released in 2012.
• Two VR projects were cancelled before launch.
• 105 developers are being laid off.
• The studio will become an IT and engine support hub.
• Ubisoft still plans to develop Tom Clancy games at other studios.

Broader Context: Ubisoft’s Cost‑Cutting After Tencent Deal

The closure of Red Storm is the latest in a series of cuts that followed Ubisoft’s 2025 partnership with Tencent. The $1.25 billion deal split the company into several semi‑independent studios, each responsible for its own franchises. In the wake of that restructuring, Ubisoft has cancelled multiple projects and laid off staff across the organization.

While the move may feel abrupt, it reflects a strategic shift toward more sustainable development models. By consolidating resources and focusing on core IPs, Ubisoft hopes to streamline operations and reduce overhead.

FAQ

Why was Red Storm shut down? The studio was closed as part of Ubisoft’s global cost‑saving plan, which aims to reduce development overhead after the Tencent partnership.

Yes. Ubisoft still intends to produce new Tom Clancy titles at other studios, such as Ubisoft Toronto and Ubisoft Montreal.

Employees will receive severance packages and career‑transition assistance, including job‑placement services and counseling.

No. The cancelled VR titles—Splinter Cell spin‑off and The Division Heartland—were officially scrapped before release.