In a galaxy not so far away, the Star Wars gaming universe faces another setback. A new rumor suggests that Ubisoft has quietly canceled development on a sequel to Star Wars Outlaws, the open-world action-adventure game released in 2024.
A screenshot from Star Wars Outlaws (2024), Ubisoft
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The report, originating from industry insider Tom Henderson, claims the project was in its early pre-production stages before being axed, largely due to the original game’s underwhelming commercial performance. This development has sparked discussions among fans and analysts about the future of Star Wars video games and Ubisoft’s strategy with licensed IPs.
Background on Star Wars Outlaws
Star Wars Outlaws, developed by Massive Entertainment and published by Ubisoft, launched on August 30, 2024, for PC, PlayStation 5, and Xbox Series X/S. The game follows supposed scoundrel Kay Vess and her companion Nix as they navigate the criminal underworld of the Star Wars galaxy, pulling off heists and evading the Empire between the events of The Empire Strikes Back and Return of the Jedi. It featured an expansive open world, reputation systems with crime syndicates, and cameos from iconic characters like Jabba the Hutt and the Millennium Falcon.
Jabba the Hutt in Star Wars Outlaws (2024), Ubisoft
The game received mixed reviews, averaging a Metacritic score of 76. User scores were similarly middling, around 3.9/5 on platforms like the Epic Games Store. Sales fell short of expectations, with Ubisoft admitting in September 2024 that initial figures were “softer than expected.”
Simply put: the game was a major flop and an embarrassing disaster for Disney and Ubisoft.
Ubisoft CEO Yves Guillemot later pushed the blame onto Disney and Lucasfilm, attributing the flop to the Star Wars franchise being in “choppy waters,” citing broader challenges with the IP.
A screenshot from Star Wars Outlaws (2024), Ubisoft
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Post-launch, Ubisoft supported the game with updates focused on optimization, gameplay tweaks, and quality-of-life improvements. Two major DLC expansions were released: Wild Card and A Pirate’s Fortune, the latter involving Kay teaming up with pirate Hondo Ohnaka to explore ancient tombs and battle new threats.
A Nintendo Switch 2 port is still slated for September 4, 2025, complete with a new trailer showcasing enhanced features for the hybrid console.
Details of the Rumor
The Star Wars Outlaws sequel cancellation rumor surfaced on July 24, 2025, during Insider Gaming’s podcast, where Tom Henderson revealed that Star Wars Outlaws 2 had been in early development but never progressed to full production.
A screenshot from Star Wars Outlaws (2024), Ubisoft
According to Henderson, the sequel was conceptualized shortly after the first game’s launch but was shelved indefinitely due to the original’s poor sales and reception. This aligns with Ubisoft’s recent cost-cutting measures and reevaluation of its portfolio amid financial pressures.
No official statement has come from Ubisoft or Lucasfilm, leaving the rumor unconfirmed but widely circulated.
Reasons Behind the Alleged Cancellation
The primary culprit appears to be Star Wars Outlaws’ commercial failure. Despite a hefty marketing push and whatever allure remains for the Star Wars brand, the game was criticized for repetitive missions, technical issues at launch, and a perceived lack of innovation in its open-world formula. While Ubisoft leadership has publicly blamed external factors, including fan fatigue with the franchise (which is valid), insiders also suggest internal mismanagement and high development costs played a role in the game’s downfall.
In other words, Ubisoft has its share of the blame too.
Key art for Star Wars Outlaws (2024), Ubisoft
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This cancellation could signal broader troubles for Ubisoft, which has faced layoffs, project delays, and stock declines in recent years. The company has pivoted toward live-service games and remakes, potentially viewing a Star Wars sequel as too risky.
Implications for Star Wars Gaming
If true, the cancellation of this Star Wars Outlaws sequel leaves a void in Star Wars gaming. With EA’s exclusivity deal ended, Ubisoft was positioned to expand the franchise’s underworld lore. Fans now look to other projects, like Respawn’s Jedi series or upcoming titles from Quantic Dream.
A screenshot from Star Wars Outlaws (2024), Ubisoft
For Ubisoft, this could mean a retreat from high-profile licenses, focusing instead on established franchises like Assassin’s Creed. The Star Wars IP, meanwhile, continues to navigate challenges, with recent films and shows receiving polarized reception.
As of now, the rumor remains unverified, but its rapid spread underscores the fragility of big-budget gaming in 2025.
Do you think the Star Wars Outlaws sequel has really been canceled? Sound off in the comments and let us know!
Woke Ubisoft put a fugly masculine “woman” in it. And no man bought the thing. Maybe a few lesbians bought it, then got bored of playing after half an hour.
I mean, if they had hired me as a consultant, I’d have said, Make it right wing, with beautiful playable characters, macho men, and gorgeous women. And fire your DEI staff; hire men who know what they’re doing. Know what? They’d have had a mega-hit on their hands. They’d be printing money.
I just can’t understand what went wrong for them. They ran with a main character who was the visual embodiment of gym sock sweat, which in told is a very popular look these days. Their AI was almost as competent as Joe Biden, with combat as realistic as the human faces in the first Toy Story, and an understanding of Star Wars almost on par with Rian Johnson’s. With a pedigree like that, I’m sure there were tens of buyers out there!