Big Changes at Ubisoft: The Division Heartland Cancellation
Ubisoft has announced the cancellation of its upcoming free-to-play shooter, Tom Clancy's The Division Heartland. This decision comes as part of the company's strategic shift to focus resources on what it considers "bigger opportunities," such as XDefiant and Rainbow Six.
The news was revealed in Ubisoft's recent earnings release, where the company stated that it has "redeployed resources to bigger opportunities such as XDefiant and Rainbow Six." This move is part of a larger restructuring effort that Ubisoft has been undergoing to streamline its operations, reduce costs, and concentrate its efforts on fewer, larger games.
In a statement regarding the cancellation, Ubisoft said, "After careful consideration, we have made the tough call to halt development on Tom Clancy’s The Division Heartland, effective immediately. Our priority now is to support the talented team members at our Red Storm Entertainment studio, who will be transitioning to new projects within our company, including XDefiant and Rainbow Six."
Tom Clancy's The Division Heartland was first announced in 2021 and was being developed by Red Storm Entertainment. Despite undergoing multiple testing phases and being in a publicly playable state, the game was quietly delayed, with its planned release moving to the last fiscal year. However, it never materialised, leading to speculation among fans about its future.
Ubisoft's decision to cancel The Division Heartland is part of a broader trend of game cancellations and restructuring within the company. In recent years, Ubisoft has cancelled several unannounced games, including Project Q and Immortals Fenyx Rising 2. The company has cited the need to focus its resources and avoid overextending itself as reasons for these cancellations.
In addition to game cancellations, Ubisoft has also undergone significant cost-cutting measures, including studio closures and layoffs. According to Ubisoft's earnings release, the company has reduced its employee numbers by over 1,700 people over the past 18 months, while retention rates have improved. As of March 2024, Ubisoft employs 19,011 people globally.
Despite these challenges, Ubisoft remains optimistic about its future. During the earnings call, CEO Yves Guillemot stated that the company is "back on track" for a "profitable growth trajectory," citing record annual and quarterly net bookings. Moving forward, Ubisoft plans to focus on returning to leadership in open-world adventure games while expanding its games-as-a-service offerings. Upcoming releases for this year include Assassin's Creed Shadows, Rainbow Six Mobile, Star Wars Outlaws, The Division Resurgence, and XDefiant.
Technologically, Ubisoft is narrowing its focus on its own internal game engines, specifically Anvil and Snowdrop, and is actively pursuing generative AI technology, particularly with its NEO NPC program.
In summary, Ubisoft's decision to cancel Tom Clancy's The Division Heartland reflects its strategic efforts to focus on larger opportunities and streamline its operations. While this decision may disappoint fans of the franchise, it is part of a broader strategy aimed at ensuring Ubisoft's long-term success in the gaming industry.