Key Takeaways
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- Red Storm Entertainment will cease game development, marking an end to its legacy as a video game studio after nearly 30 years in operation.
- The studio will transition to providing technical support and working on Ubisofts proprietary Snowdrop Engine.
- The restructuring aims to save Ubisoft approximately $200 million in production costs.
- Key franchises like Rainbow Six, Ghost Recon, and The Division were developed by Red Storm Entertainment within the Tom Clancy universe. Recent cancellations of Splinter Cell VR game (in 2022) and The Division Heartland (in 2024) have led to this shift in focus.
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Closure of Red Storm Entertainment Marks End to Game Development Era, Transition to Technical Support and Snowdrop Engine Focus
Ubisoft confirmed on March 19, 2026, with internal sources that it would end game development at Red Storm Entertainment, resulting in 105 layoffs and marking the end of the studio’s game development legacy just before its 30th anniversary. While the studio will remain operational, it will transition to providing technical support. Founded in 1996 through a partnership between Virtus Corporation and author Tom Clancy, Red Storm Entertainment gained recognition for adapting Tom Clancy’s action and military espionage stories into video games. The studio developed key franchises within the Tom Clancy universe, including Rainbow Six, Ghost Recon, and The Division. In recent years, Ubisoft canceled Red Storm’s Splinter Cell VR game in 2022 and The Division Heartland, a free-to-play game, in 2024. Following these cancellations, Red Storm Entertainment will shift its focus to technical support and work related to the Snowdrop engine, according to Gamebiz. The remaining Red Storm employees will concentrate on enhancing the Snowdrop Engine, Ubisoft’s proprietary game development engine, and managing technical support and customer relations. This restructuring aims to reduce Ubisoft’s overall production costs by approximately $200 million.
In Case You Missed It
In other gaming news, Ahmed Hassan has been keeping tabs on Ubisoft’s plans for some of our favorite franchises. In his recent pieces, “New Ghost Recon in Production” (published July 21st) and “Before GTA 6, Rockstar Could Delight Fans with a Massive Surprise” (published July 15, 2025), he explores the exciting possibilities of new installments and remasters. While we’re all eager for official news on GTA 6, Ahmed’s insights might just make your day if you’re craving more from these iconic franchises – head over to ( and ) to dive in. And speaking of Ubisoft, Carlos Mendoza takes a deep dive into the recent financial fluctuations of Rainbow Six Siege in his article “Rainbow Six Siege Fell Short as Players Exploited Price Error”. Published on July 23rd, this insightful piece explores Ubisoft’s reported lower revenue during Q2 2025 and how pricing errors and launch issues impacted the game’s earnings. Despite these temporary setbacks, Rainbow Six Siege X, the major update celebrating the game’s 10th anniversary, has been received positively by players, promising a brighter future for the tactical shooter. You can read more about this compelling story here ().
They also talk about it
Links to external sources for further reading
- Ubisoft 'ends game development' at Tom Clancy studio, Red Storm, resulting in 105 job lossesUbisoft 'ends game development' at Tom Clancy studio, Red Storm, resulting in 105 job lossesvideogameschronicle.com
- 30-year-old studio downsized permanently.30-year-old studio downsized permanently.ign.com
- Ubisoft reportedly shrinks Tom Clancy studio Red Storm Entertainment, laying off 105 staffUbisoft reportedly shrinks Tom Clancy studio Red Storm Entertainment, laying off 105 staffeurogamer.net
- Ubisoft are ending game development at long-time Tom Clancy studio Red Storm with 105 staff laid off, according to reportsUbisoft are ending game development at long-time Tom Clancy studio Red Storm with 105 staff laid off, according to reportsrockpapershotgun.com
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