Paris, France – Ubisoft on Jan 21 finally outlined the scope of a major restructuring effort that the company believes is necessary to compete in an increasingly demanding global games market, despite the cost of multiple game cancellations and deeper cost-cutting measures.
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The announcement triggered disappointment among fans, particularly over the cancellation of the long-awaited remake of Prince of Persia: The Sands of Time, a popular early-2000s title that had already spent several years in development.
In total, Ubisoft confirmed that five projects have been cancelled outright — four of them previously unannounced and one a mobile title — while a further seven games have been delayed. Together, the cancellations and postponements account for a substantial portion of an anticipated €1 billion (RM4.74 billion) operating loss projected for the company’s 2025–26 financial year.
Despite the near-term financial hit, management said the streamlining of its development pipeline is essential to reposition the group in a market that has become more selective and highly competitive.
New operating model
As part of the overhaul, Ubisoft will reorganise many of its studios worldwide into a new structure of five autonomous “creative houses”, each focused on a specific game genre — an approach the company described as an industry first.
Chief executive Yves Guillemot said each unit will operate with full creative and financial responsibility under dedicated leadership, calling the move a “radical” shift in how the company is organised.
The first of these units, Vantage Studios, was revealed in October and groups together Ubisoft’s best-known franchises, including Assassin’s Creed, Rainbow Six and Far Cry. The unit is tasked with transforming each franchise into a €1 billion (RM4.74 billion) annual revenue generator.
Vantage Studios was valued at €3.8 billion (RM18.04 billion), with Tencent acquiring a 26% stake for €1.16 billion (RM5.51 billion).
Ubisoft also outlined plans for four additional creative houses, which have yet to be named. These will focus respectively on shooter franchises such as The Division and Ghost Recon; multiplayer titles including For Honor and The Crew; fantasy-based worlds like Might and Magic and Prince of Persia; and casual or family-oriented games such as Just Dance.
Roughly half of Ubisoft’s global studios will be distributed among the five houses. The remaining studios will form a central support network providing specialist expertise for individual projects, according to studios chief Marie-Sophie de Waubert.
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Separate shared services will oversee technology, production, marketing and distribution, while Ubisoft’s Paris headquarters will retain control over strategy and resource allocation.
Workforce tensions and further cuts
Management also plans to significantly reduce remote working and reinstate a five-day in-office workweek — a proposal that is expected to face opposition from employees in France, where staff staged repeated walkouts in 2024 to protect teleworking arrangements.
Vincent Cambedouzou, a representative of the video game workers’ union STJV at Ubisoft Paris, criticised the move as unnecessary and described the restructuring as a “disaster”, saying employees were increasingly anxious as studios continue to shut down.
Ubisoft has already eliminated around 3,000 jobs globally and closed several studios under a €300 million (RM1.42 billion) cost-reduction programme. On Wednesday, the company announced a “third and final phase” of restructuring aimed at delivering a further €200 million (RM949.32 million) in savings over two years, while also flagging potential asset disposals.
The company also confirmed it would close its Stockholm studio, transferring remaining staff to another Swedish subsidiary, Massive.
Guillemot said the combined measures represented a “decisive turning point” for Ubisoft, while acknowledging that the refocusing of its portfolio would weigh heavily on short-term financial performance.
The company, which previously expected broadly balanced results for 2025–26, now forecasts an operating loss of €1 billion (RM4.74 billion) and a decline in its preferred “net bookings” metric to about €1.5 billion (RM7.12 billion). Ubisoft had aimed to return to operating profitability in 2026–27 but said updated guidance would be provided in May.
Amid broader challenges facing the global games industry and following several underwhelming recent releases, Ubisoft’s shares fell 51% over the course of 2025.
-AFP
-TheStar