Ubisoft has officially shuttered the game development department at Red Storm Entertainment, the veteran studio synonymous with the Ghost Recon franchise and the broader Tom Clancy universe. While the North Carolina-based office will not close entirely, its operational focus has shifted toward technical infrastructure, leading to more than 100 layoffs.
According to reports from GamesIndustry.biz, Ubisoft is transitioning the studio into a support-oriented entity. Moving forward, the remaining team will focus on maintenance for the Snowdrop Engine, IT services, and customer relations. This strategic pivot has resulted in the elimination of 105 positions.
The Legacy of Red Storm
Founded in 1996, Red Storm Entertainment was a foundational pillar for tactical shooters. The studio was instrumental in the birth of Ghost Recon and Rainbow Six, leading development on many of the franchises’ most beloved entries throughout the 2000s, including 2012’s Ghost Recon: Future Soldier. In recent years, the team carved out a niche in the virtual reality space, producing titles such as Star Trek: Bridge Crew, Werewolves Within (which was adapted into a 2021 horror-comedy film), and most recently, Assassin’s Creed Nexus VR.
Despite its pedigree, the studio’s recent output was hampered by high-profile cancellations. A Splinter Cell VR project was axed in 2022, and more recently, the free-to-play spin-off The Division Heartland was scrapped during development in early 2024.
A Massive Corporate Restructure
The downsizing at Red Storm is a direct consequence of a sweeping organizational overhaul Ubisoft initiated at the start of the year. This aggressive cost-cutting program has led to the cancellation of several projects, including the long-troubled remake of Prince of Persia: The Sands of Time.
To streamline production, Ubisoft has consolidated its internal studios into five “Creative Houses.” Tom Clancy properties—such as Ghost Recon and The Division—now sit under “Creative House 2.” The publisher stated that this new model is designed to maximize investment in massive open-world titles, games-as-a-service (GaaS), and the implementation of player-facing generative AI tools.
