How Adobe's UX design tool started strong but ultimately lost to Figma

๐Ÿ“Œ Overview

Adobe XD was Adobe's answer to the growing demand for a modern UI/UX design tool. Initially launched as "Project Comet," it promised powerful performance, native prototyping, and seamless Creative Cloud integration. Yet, despite strong beginnings, Adobe XD could not keep up with rapidly evolving competition especially Figma and ultimately lost its relevance.

๐Ÿš€ Phase 1: The Beta Buzz (2016โ€“2017)

๐Ÿ”น Launch Highlights

  • Unveiled: Adobe MAX 2015 as "Project Comet"
  • Public Beta: March 2016
  • Positioning: A unified platform for UX design and prototyping, faster and more intuitive than Photoshop or Illustrator

๐Ÿ”ง Core Features

  • Repeat Grid
  • Interactive prototyping in the same tool
  • Fast, vector-based performance
  • Native macOS and later Windows support
  • Creative Cloud Libraries sync

"When we tried the beta, it was surprisingly good even though it felt half-baked. The best part was how everything worked seamlessly within the Adobe ecosystem, like other apps we were already using. It was really easy to use and felt familiar. At that time, web-based apps weren't the norm people didn't always have reliable internet access. We were also exploring Figma on the side, but honestly didn't realize intentionally or unintentionally that it would completely take over. Now, there's no competition."

Ramesh Sao

๐Ÿ“ˆ Phase 2: Momentum & Growth (2017โ€“2019)

๐ŸŒŸ Growth Highlights

  • Plugin support launched
  • Added features like Auto-Animate, voice prototyping
  • Collaborations with Slack, Jira, Zeplin, and other third-party tools
  • Windows version became more stable and feature-complete

๐Ÿ“Š Market Position

XD started gaining popularity among Adobe users and teams already on Creative Cloud. Still, Figma and Sketch were gaining more attention due to faster updates and flexibility.

๐Ÿงฑ Phase 3: Plateau & Pressure (2020โ€“2022)

โš ๏ธ Warning Signs

  • Adobe XD lagged behind in features like real-time collaboration and browser accessibility
  • Figma soared due to its ease of sharing, teamwork features, and browser-first design
  • Adobe XD's updates slowed down and lacked innovation

๐Ÿงจ Phase 4: The Figma Acquisition Attempt & The Fall (2022โ€“2024)

๐Ÿ’ผ Adobe Attempts to Acquire Figma

  • Announced: September 15, 2022
  • Adobe agreed to acquire Figma for $20 billion, signaling that even Adobe acknowledged XD could no longer compete.
  • Reason: Rather than battle Figma, Adobe tried to absorb its biggest rival
  • User Reaction: Designers feared Figma would lose its identity or become paywalled

Regulatory Roadblock:

  • U.S. DOJ, EU, and UK antitrust bodies launched investigations
  • In 2024, Adobe and Figma mutually terminated the acquisition, unable to secure regulatory approval

๐Ÿ“‰ Post-Acquisition Fallout

  • Adobe stopped promoting or investing in XD
  • No new major updates were released in 2023โ€“2024
  • By 2025, Adobe XD was unofficially discontinued, with support fading

โšฐ๏ธ The Fall of Adobe XD

๐Ÿ“š Lessons Learned

What Worked

  • Clean, simple UI
  • Integrated prototyping
  • Seamless with Adobe CC
  • Good for static design

What Didn't

  • Poor community traction
  • Slower innovation
  • No browser-based access
  • Late to co-editing & team collaboration

๐Ÿง  Key Takeaway

Adobe XD was born out of Adobe's desire to dominate the UI/UX space but failed to evolve fast enough. Figma redefined collaboration, accessibility, and community engagement in design tools. Adobe's attempt to buy Figma was itself an admission of defeat, and ultimately, XD faded out not because it was bad but because it wasn't the best.