Adobe, a leader in creative software, halts XD development, its contender against Figma, after the failed acquisition deal.
In a surprising move, Adobe announced the discontinuation of its web design product, XD, designed to compete with Figma, following the collapse of the acquisition deal between the tech giant and the startup.
Figma’s Dominance and Adobe’s XD in Limbo
Figma, a platform empowering users to craft application and website interfaces, has overshadowed Adobe XD in recent years. Adobe decided to put XD into “maintenance mode,” ceasing the introduction of new features or separate sales, as Figma continued to gain traction.
The acquisition attempt by Adobe, valued at $20 billion in September 2022, drew global regulatory attention. The UK initiated an investigation in May 2023, and the US Department of Justice prepared a lawsuit to block the merger. Ultimately, the deal to acquire Figma collapsed in December 2023 under mounting pressure from regulatory bodies.
Adobe’s Response and Future Plans
A representative from Adobe clarified the company’s stance: “We have no plans to continue investing in XD.” This statement suggests a strategic shift for Adobe, signaling a departure from the XD project.
Despite the setback, analysts speculate that Adobe might explore the development of another product to rival Figma. An Adobe spokesperson confirmed the company’s openness to partnerships in the design product space, stating, “We are focused on opportunities in image processing, photography, design, the web, animation, 3D, as well as Express and Firefly.”
Looking Ahead: Adobe’s Evolving Design Strategy
With XD no longer in active development and the failed Figma acquisition, Adobe seems poised to reassess its design software strategy. The company may be gearing up for a fresh attempt to enter the competitive design tools market, emphasizing collaboration and innovation in response to the evolving needs of designers and developers.
As the industry watches Adobe’s next move, one thing is clear – the dynamics of the design software landscape are in flux, and Adobe is navigating this ever-changing terrain with a keen eye on future opportunities.
