Ubisoft Cancels Games in Major Restructuring
In a significant shake-up, video game publisher Ubisoft has announced the cancellation of six games, including a highly anticipated remake of the classic title Prince of Persia: The Sands of Time. The decision comes as part of a broader reorganization effort aimed at streamlining operations and focusing on specific creative genres.
Reorganization into Five Creative Houses
Ubisoft is restructuring its operations into five distinct "Creative Houses," each dedicated to a specific genre of gaming. This new structure is designed to combine game development and go-to-market functions with a gamer-centric approach. The five houses are:
Creative House 1: Vantage Studios
Focuses on scaling and extending Ubisoft's largest and established franchises, such as Assassin's Creed, Far Cry, and Rainbow Six. The goal is to turn these franchises into annual billionaire brands.
Creative House 2: Competitive and Cooperative Shooters
Dedicated to developing competitive and cooperative shooter experiences. Brands include The Division, Ghost Recon, and Splinter Cell.
Creative House 3: Live Experiences
Designed to operate a roster of select, sharp Live experiences. Brands include For Honor, The Crew, Riders Republic, and Brawlhalla.
Creative House 4: Immersive Fantasy Worlds
Dedicated to immersive fantasy worlds and narrative-driven universes. Brands include Anno, Might & Magic, Rayman, and Prince of Persia.
Creative House 5: Casual and Family-Friendly Games
Focuses on reclaiming position in casual and family-friendly games. Brands include Just Dance, Idle Miner Tycoon, Ketchapp, and Hungry Shark.
Cancelled Games and Future Plans
Along with the Prince of Persia: The Sands of Time remake, Ubisoft has discontinued four unannounced games and one mobile title. The company stated that these projects "do not meet the new enhanced quality as well as more selective portfolio prioritization criteria at Group level."
Ubisoft will allocate additional development time to seven unnamed games to ensure they meet enhanced quality benchmarks. One unannounced title, initially planned for release in fiscal year 2026, has been delayed to fiscal year 2027.
Despite the cancellations, Ubisoft is not slowing down entirely. The company is currently developing four new intellectual properties (IPs), including the game March of Giants, which it recently acquired from Amazon. The allocation of these new IPs to the Creative Houses will be announced at a later date.
Financial Performance and Workforce Reduction
During the announcement, Ubisoft shared early results for its latest quarter, reporting €330 million in sales. The company attributes this performance to an overperformance linked to partnerships and a robust back-catalog. The full earnings will be reported on February 12 as previously announced.
While Ubisoft did not confirm the number of additional layoffs, the company has already shuttered its Halifax and Stockholm studios. Details on further workforce reduction will be shared at a later date.
Return to Five-Day Work Week
As part of the restructuring, Ubisoft will return to a five-days-per-week in-office policy for all teams. This policy will include an annual allowance of working-from-home days, balancing the need for collaboration with employee flexibility.
Industry Impact and Future Outlook
The cancellations and restructuring at Ubisoft come at a time when the video game industry is facing increased scrutiny over production costs, development timelines, and workforce management. Ubisoft's decision to focus on specific genres and enhance quality benchmarks reflects a strategic shift aimed at long-term value creation.
While the cancellation of beloved franchises like Prince of Persia may disappoint fans, the company's commitment to new IPs and strategic investments suggests a forward-looking approach. The success of this reorganization will depend on Ubisoft's ability to execute its vision and adapt to the evolving gaming landscape.
