An Investigative Report
December 29, 2025
On December 27, 2025, hackers breached Rainbow Six Siege's backend systems and distributed premium currency equivalent to roughly $13 million in value. Ubisoft shut down all servers globally—PC, PlayStation, Xbox—and couldn't explain how attackers gained administrative control of a game that's been live for ten years.
It was the final humiliation in a year that saw the French publisher's market value collapse to $1.01 billion—an 85% decline from its $12.17 billion peak in 2021.
This isn't a story about one bad game or one bad quarter. This is about how systemic workplace failures, technical debt, legal battles over digital ownership, and questionable corporate decisions compounded over five years to destroy one of gaming's major publishers.
This investigation draws from court documents, financial filings, employee testimony, legislative records, and investigative reporting to trace exactly how Ubisoft fell apart.
PART I: THE WORKPLACE SCANDAL (2020-2025)
July 2020: Libération's Investigation
On July 1, 2020, French newspaper Libération published findings from 20 employee testimonies revealing systemic misconduct at Ubisoft's Paris headquarters, particularly in the Editorial department—the creative division controlling all game projects.
The allegations centered on Serge Hascoët (Chief Creative Officer), Tommy François (VP of Editorial), and Guillaume Patrux (game director).
Tommy François, former VP of Editorial
According to employee testimonies published in Libération:
Tommy François:
- Showed pornographic content during meetings with female subordinates
- Used derogatory language about female staff's appearance
- Forced a newly hired employee to do a headstand while wearing a skirt
- Attempted to touch colleagues' genitals as part of a "game"
Guillaume Patrux:
- Mimed hitting staff members
- Cracked a whip near colleagues' faces
- Drew swastikas on a woman's notebook during meetings
- Set a colleague's beard on fire
One woman wearing a coat with red lining was told by an executive: "That's an invitation to rape."
A Muslim employee allegedly found her screensaver changed to an image of bacon. Sandwiches were thrown at her during Ramadan.
The HR Response
According to Libération's investigation, Cécile Cornet, Ubisoft's Global Head of Human Resources, allegedly told managers:
"Yves is OK with toxic management, as long as the results of these managers exceed their toxicity."
When one woman reported sexual harassment and assault, HR responded: "You shouldn't come to see her for every little annoyance."
Another person was asked during a job interview: "Can you deal with somewhat heavy, even sexist jokes?"
CEO Response and Internal Survey
On July 11, 2020, Hascoët resigned, François was fired, and Cornet left the company. CEO Yves Guillemot remained.
Yves Guillemot, CEO of Ubisoft
In an October 2020 internal survey reported by PC Gamer:
- 25% of employees experienced or witnessed workplace misconduct in the past two years
- 20% did not feel fully respected or safe
- Women reported misconduct at 30% higher rates than men
- Non-binary employees at 43% higher rates
- Only 66% who reported misconduct felt they received appropriate support
Criminal Trial (2023-2025)
In October 2023, French police arrested five former executives following a year-long investigation involving approximately 50 employee interviews.
In July 2025, three were convicted in Bobigny Criminal Court:
- Tommy François: 3-year suspended sentence, €30,000 fine (~$31,500 USD) (including attempted sexual assault conviction)
- Serge Hascoët: 18-month suspended sentence, €45,000 fine (~$47,250 USD)
- Guillaume Patrux: 12-month suspended sentence, €10,000 fine (~$10,500 USD)
Maude Beckers, lawyer for the plaintiffs, told Libération:
"This is a very special case because, over and above simple individual behavior, it reveals systemic sexual violence. I've been in this profession for twenty-two years, and this is the first time I've seen such consistent work [by the judicial police] on reports of this nature."
The union Solidaires Informatique filed a second lawsuit demanding Yves Guillemot and the company be tried for complicity in systemic harassment, arguing:
"Ubisoft as a legal entity [enabled] institutional sexual harassment by setting up, maintaining and reinforcing a system where sexual harassment is tolerated because it is more profitable for the company to keep harassers in place than to protect its employees."
Guillemot was not required to testify. Ubisoft was not officially part of the trial.
(Sources: Libération, PC Gamer, France24, Euronews, Deadline)
PART II: XDEFIANT—"Crippling Tech Debt"
The Executive Producer's Account
Mark Rubin, XDefiant's Executive Producer and a Call of Duty veteran (Modern Warfare 1 & 2), posted this statement on June 4, 2025, the day after the game shut down:
"We had very little marketing, especially after launch, we weren't acquiring new players after the initial launch."
"We had crippling tech debt using an engine that wasn't designed for what we were doing, and we didn't have the engineering resources to ever correct that."
"What we saw in Season 3 wasn't even enough content in my mind for launch. There were some really cool features coming later in Season 4 or even 5 that would have completed the game in a way that I felt it should have been for launch."
He concluded by announcing he was leaving the industry entirely:
"I do care passionately about the shooter space and hope that someone else can pick up the flag that I was trying to carry and make games again that care about the players, treat them with respect, and listen to what they have to say."
The Timeline
- May 2024: XDefiant launches, reaches 15 million total players
- August 2024: Concurrent players collapse below 20,000 (Insider Gaming)
- December 3, 2024: Shutdown announced for June 3, 2025
- December 2024: 277 employees laid off
- 143 in San Francisco
- 134 in Osaka/Sydney
- Ubisoft San Francisco production studio closed
- Ubisoft Osaka closed
Marie-Sophie de Waubert (Chief Studios Officer) wrote:
"Despite an encouraging start, the team's passionate work, and a committed fan base, we've not been able to attract and retain enough players in the long run to compete at the level we aim for in the very demanding free-to-play FPS market."
(Sources: VGC, PC Games N, Wikipedia, Ubisoft announcements)
PART III: THE CREW & DIGITAL OWNERSHIP
The Shutdown
In March 2024, Ubisoft shut down servers for The Crew (2014), rendering the racing game permanently unplayable—even for players with physical discs. Unlike The Crew 2 and Motorfest, no offline mode was provided.
The Lawsuit
On November 4, 2024, California residents Matthew Cassell and Alan Liu filed a class action lawsuit. Their complaint opened:
"Imagine you buy a pinball machine, and years later, you enter your den to go play it, only to discover that all the paddles are missing, the pinball and bumpers are gone, and the monitor that proudly displayed your unassailable high score is removed."
They argued:
- Activation codes showed 2099 expiration dates, implying long-term access
- Packaging suggested offline playability
- In-game currency constitutes gift cards under California law, which cannot legally expire
Ubisoft's Defense
Attorney Steven A. Marenberg argued in February 2025:
"Plaintiffs do not allege that Ubisoft made any statements indicating that consumers would, in fact, obtain unfettered access to The Crew if they purchased a physical copy. To the contrary, the packaging made clear that Ubisoft could limit access."
"After making their purchases, Plaintiffs enjoyed access to The Crew for years before Ubisoft decided in late 2023 to retire and shut down the servers of the ten-year-old video game. Plaintiffs received the benefit of their bargain and cannot complain now that they were deceived."
The packaging included warnings in "ALL CAPITAL LETTERS" that "UBISOFT MAY CANCEL ACCESS TO ONE OR MORE SPECIFIC ONLINE FEATURES UPON A 30-DAY PRIOR NOTICE."
The Philippe Tremblay Quote
The lawsuit gained national attention after resurfacing this January 2024 interview with Philippe Tremblay (Director of Subscriptions) in GamesIndustry.biz:
"One of the things we saw is that gamers are used to, a little bit like DVD, having and owning their games. That's the consumer shift that needs to happen. They got comfortable not owning their CD collection or DVD collection. That's a transformation that's been a bit slower to happen [in games]. So it's about feeling comfortable with not owning your game."
The quote went viral. The meme "If buying isn't owning, piracy isn't stealing" spread across gaming communities.
California's Legislative Response
On September 24, 2024, Governor Gavin Newsom signed AB 2426 into law (effective January 1, 2025):
- Digital storefronts cannot use "buy" or "purchase" unless clearly disclosing customers receive a license, not ownership
- Companies must inform customers access can be revoked
- Violations face up to $2,500 per illegal listing
Assemblymember Jacqui Irwin stated:
"As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important. AB 2426 will ensure the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past."
Irwin cited two incidents: Sony's attempted removal of Discovery shows (reversed after outcry) and Ubisoft's shutdown of The Crew.
Industry responses:
- Steam (October 2024): Added disclaimer: "A purchase of a digital product grants a license for the product on Steam."
- GOG (September 2024): "When we said we let you 'own' your games, we meant that no matter what happens... you'll still be able to play them thanks to our offline installers."
The lawsuit was voluntarily withdrawn in June 2025. The case was dismissed without prejudice.
(Sources: Techdirt, Kotaku, Polygon, GamesRadar+, PC Gamer, Game File, MobileSyrup)
PART IV: STAR WARS OUTLAWS & MASSIVE ENTERTAINMENT
At a July 2025 shareholder meeting, Yves Guillemot addressed Star Wars Outlaws' underperformance:
"We didn't reach our sales targets. Outlaws was released at a time when the brand that it belonged to was in a bit of choppy waters."
He referenced The Acolyte's cancellation and Star Wars franchise fatigue before adding:
"The game had a few items that still needed to be polished. They were polished and debugged in the early weeks after release, but it did affect sales volumes."
Ubisoft never disclosed sales figures. The company revealed Outlaws forced it to slash fiscal 2025 revenue forecasts from €2.3 billion (~$2.42 billion USD) to €1.95 billion (~$2.05 billion USD).
Massive Entertainment Layoffs
In October 2025, Massive Entertainment announced a "voluntary career transition program." The statement read:
"We have recently realigned our teams and resources to strengthen our roadmap, ensuring our continued focus on The Division franchise."
Star Wars and Avatar (another 2024 Massive title) were not mentioned. According to Le Figaro, the program "primarily targets people between projects waiting for new assignments."
(Sources: Multiple gaming outlets, Le Figaro)
PART V: THE FINANCIAL COLLAPSE
The Numbers
- January 2021: $12.17 billion market cap
- January 2024: $3.14 billion (down 74%)
- April 2025: €10 (~$10.50 USD) per share ("poison stock" territory)
- December 2025: €8.83 (~$9.27 USD)/share, ~$1.01 billion market cap
Total decline: 85%
Debt vs Market Cap (September 2024):
- IFRS net debt: €1.408 billion (~$1.48 billion USD)
- Market cap (April 2025): €1.366 billion (~$1.43 billion USD)
Ubisoft is worth less than its debt.
November 13, 2025: The Earnings Halt
At 7:45 PM CET, minutes before scheduled H1 FY2025-26 earnings release, Ubisoft announced results would be "postponed to an unspecified future date."
Simultaneously, the company requested Euronext halt all trading of shares and bonds. No explanation was provided.
CFO Frédérick Duguet wrote in an internal email (leaked to Insider Gaming):
"We need extra time to finalize the closing of the semester and to limit unnecessary speculation and market volatility."
Trading resumed days later. The stock crashed 18-20% in one day.
Earnings revealed:
- Net revenue: €1.899 billion (~$1.99 billion USD) (down 17.5% YoY)
- Net bookings: €1.85 billion (~$1.94 billion USD) (down from €2.32 billion / ~$2.44 billion USD)
- Operating loss: €15.1 million (~$15.9 million USD)
- FY2025-26 outlook: Negative free cash flow over €100 million (~$105 million USD)
Analyst credit ratings estimate Ubisoft has fallen to CCC—indicating imminent bankruptcy risk without immediate changes.
(Sources: PC Gamer, CNBC, The Escapist, That Park Place)
PART VI: THE TENCENT DEAL
On March 27, 2025, Ubisoft announced a deal that triggered a 24% stock collapse.
The Structure
Ubisoft created a subsidiary housing Assassin's Creed, Far Cry, and Rainbow Six. Tencent invested €1.16 billion (~$1.22 billion USD) for 25% stake, valuing the subsidiary at €4 billion (~$4.20 billion USD) pre-money. At least €500 million (~$525 million USD) flows to Ubisoft for working capital.
Charlie Guillemot (Yves' son) became co-chief. The Guillemot family retains over 20% voting rights. Tencent already held 9%.
The deal was structured to avoid triggering mandatory public offer rules requiring a buyout offer to all shareholders.
Shareholder Response
Minority shareholder AJ Investments filed for an Extraordinary General Meeting with two resolutions:
- Restructure as direct asset sale worth ≥€4 billion
- Distribute €23 (~$24.15 USD)/share extraordinary dividend (€3 billion / ~$3.15 billion USD total)
Their letter stated:
"Shareholders have no clarity how the deal that was announced last week will eventually benefit shareholders of Ubisoft. This signals a clear verdict from investors—the proposed deal is deeply flawed, structured to bypass mandatory public offer rules, and designed to entrench control by the Guillemot family."
(Sources: That Park Place, The Escapist, Cryptopolitan)
Analysis: The deal's structure suggests Tencent sought to acquire valuable assets while avoiding a full takeover's regulatory complexity. Whether this was primarily to preserve Guillemot control or simply the most efficient transaction structure remains unclear from public documents.
PART VII: ASSASSIN'S CREED SHADOWS & THE TEMPORARY REPRIEVE
On March 20, 2025, Assassin's Creed Shadows launched after two delays (originally scheduled November 2024, then February 2025).
According to Ubisoft's own reporting in their Q4 FY2024-25 earnings (released May 2025), Shadows achieved "second-highest Day One sales in franchise history after Valhalla."
The game's performance temporarily stabilized Ubisoft's financial situation. For several months, industry analysts revised their predictions—perhaps the company could survive after all.
But by November 2025, when Ubisoft reported H1 FY2025-26 earnings, it became clear that even Shadows' initial success couldn't offset the broader financial issues. Net bookings were down, operating losses continued, and the company projected negative free cash flow over €100 million.
One strong launch wasn't enough to reverse five years of compounding failures.
PART VIII: THE RAINBOW SIX SIEGE HACK
On December 27, 2025, hackers breached Rainbow Six Siege's backend and:
- Distributed premium currency to players (approximately 2 billion R6 Credits, equivalent to roughly $13 million in retail value)
- Unlocked developer-only "Glacier" skins
- Hijacked the ban ticker to broadcast memes
- Randomly banned/unbanned players
Ubisoft shut down all servers globally (PC, PlayStation, Xbox) and the marketplace.
Security group VX-Underground reported threat actors claimed to exploit "MongoBleed" vulnerability (CVE-2025-14847) to access MongoDB instances. Multiple hacker groups claimed involvement; none verified. Ubisoft hasn't confirmed attack vectors or disclosed compromised data.
All transactions since December 27, 11:00 AM UTC were rolled back. As of December 29, servers remain offline.
(Sources: BleepingComputer, Tom's Hardware, Dexerto)
PART IX: EMPLOYEE IMPACT
Between 2022 and December 2025, Ubisoft laid off over 2,000 employees:
- 2022-2024: 1,700 via "organizational simplification"
- December 2024: 277 (XDefiant shutdown)
- January 2025: 185 (Ubisoft Leamington closed)
- September 2025: 700 additional
Total headcount:
- September 2024: 18,597
- September 2025: 17,097
On October 16, 2024, over 700 French employees staged a three-day strike protesting office return mandates, below-inflation raises (2-3%), and lack of profit-sharing.
(Sources: Game World Observer, Wikipedia, Ubisoft financial reports)
CONCLUSION: THREE CORE FINDINGS
1. Culture Was the Foundation
The 2020 workplace scandal wasn't isolated misconduct—it revealed institutional tolerance for toxic behavior when profitable. When HR leadership reportedly told managers "Yves is OK with toxic management, as long as the results exceed the toxicity," it established a pattern: leadership prioritized short-term performance over long-term sustainability.
2. Technical and Creative Debt Compounded
Mark Rubin's description of "crippling tech debt" using an engine not designed for XDefiant's needs illustrates a broader pattern. Star Wars Outlaws needed "weeks" of post-launch debugging. Rainbow Six Siege, after ten years of operation, suffered backend vulnerabilities allowing administrative-level compromise. These aren't isolated technical failures—they suggest systemic under-investment in infrastructure relative to ambition.
3. The Digital Ownership Question Reached Legislation
Philippe Tremblay's "get comfortable not owning your game" became a cultural flashpoint, leading to California AB 2426. The legal argument Ubisoft presented in The Crew case—that physical packaging warnings absolved them of responsibility—may be legally sound but demonstrated a disconnect between legal strategy and customer expectation.
WHAT HAPPENS NEXT
Industry analyst Joost van Dreunen noted in early 2025:
"Ubisoft is on the verge of privatization and dismantling. Its valuable assets—particularly Rainbow Six Siege and the Assassin's Creed franchise—could be worth more separately than together."
Even Assassin's Creed Shadows' strong launch in March 2025 proved insufficient to reverse the broader financial decline. By November, the company reported continuing losses and negative cash flow projections.
The most likely scenario, based on available financial data: Tencent will use its current 25% stake in Ubisoft's subsidiary as a foundation for gradual acquisition. The company's deteriorating financial position—debt exceeding market cap, CCC credit rating, ongoing layoffs—suggests limited alternatives to eventual buyout or bankruptcy filing.
Whether the Guillemot family negotiates an exit or attempts to maintain control under Tencent ownership remains unclear. What is clear: the independent French publisher that released Prince of Persia, Rayman, and Assassin's Creed no longer exists in any meaningful form.
SOURCES
Workplace Investigation:
- Libération (July 2020) - Original investigative reports
- PC Gamer (October 2, 2020) - Internal survey results
- France24, Euronews (June-July 2025) - Criminal trial coverage
- Deadline (March 11, 2025) - Union litigation demands
Game Performance & Layoffs:
- VGC, PC Games N, Gaming Bolt (June 2025) - Mark Rubin statements
- Wikipedia - XDefiant, The Crew, company data
- Insider Gaming - Player count data
- Game World Observer - Employee headcount
Legal & Legislative:
- Techdirt, Kotaku, Polygon - The Crew lawsuit
- GamesRadar+, VGC - Legal filings
- PC Gamer, Game File, MobileSyrup - AB 2426 coverage
Financial Data:
- PC Gamer, CNBC, The Escapist - Earnings halt
- That Park Place, Tech4Gamers - Stock performance
- Ubisoft official financial reports (Q4 FY2024-25, H1 FY2025-26)
Security:
- BleepingComputer, Tom's Hardware, Dexerto - Rainbow Six hack
Corporate Transactions:
- That Park Place, The Escapist, Cryptopolitan - Tencent deal
All quotes verified through original sources or multiple independent reports. Currency conversions use approximate €1 = $1.05 USD rate for December 2025.