Ubisoft's Major Reorganization Leads to Cancellations and Layoffs
In a significant shake-up of its operations, French video game publisher Ubisoft has announced a reorganization that will see the company divided into five "Creative Houses," each focused on a specific creative genre. This restructuring comes alongside studio closures and layoffs, with six games in development being canceled, including the highly anticipated Prince of Persia: The Sands of Time remake.
The Reorganization Plan
Ubisoft's new model is designed to centralize game development and go-to-market functions with a gamer-centric approach. The five decentralized houses will be fully responsible for brand development, content strategy, and editorial direction. Each house will be shaped by distinct creative genres, led by dedicated high-profile teams with unique expertise in those genres. Additionally, these houses will have full financial ownership and account for economic performance.
Creative House 1 (Vantage Studios)
This house is focused on scaling and extending Ubisoft's largest and established franchises to turn them into annual billionaire brands. The brands included in this house are Assassin's Creed, Far Cry, and Rainbow Six.
Creative House 2
Dedicated to competitive and cooperative shooter experiences, this house includes brands such as The Division, Ghost Recon, and Splinter Cell.
Creative House 3
This house is designed to operate a roster of select, sharp Live experiences. Brands included are For Honor, The Crew, Riders Republic, and Brawlhalla.
Creative House 4
Dedicated to immersive fantasy worlds and narrative-driven universes, this house includes brands such as Anno, Might & Magic, Rayman, Prince of Persia, and Beyond Good & Evil.
Creative House 5
This house is focused on reclaiming position in casual and family-friendly games. Brands included are Just Dance, Idle Miner Tycoon, Ketchapp, Hungry Shark, Invincible: Guarding the Globe, Uno, and Hasbro.
Canceled Games and Future Plans
As part of this restructuring, Ubisoft has discontinued four unannounced games and one mobile title that do not meet the new enhanced quality and more selective portfolio prioritization criteria at the group level. Among the canceled projects is the Prince of Persia: The Sands of Time remake.
Ubisoft has also allocated additional development time to seven unnamed games to ensure enhanced quality benchmarks are fully met and maximize long-term value creation. This includes an unannounced title that was initially planned to release in fiscal year 2026 but has now been delayed to fiscal year 2027.
New Intellectual Properties
Despite the cancellations, Ubisoft has announced that four new intellectual properties are currently in development. This includes the game March of Giants, which the company recently acquired from Amazon. The creative houses where these new IPs will be allocated will be announced at a later date.
Impact on Employees and Operations
During the media call, Ubisoft leadership did not confirm how many more layoffs will be coming as the 17,000-employee company is restructured. However, it was noted that details on workforce reduction will be shared at a later date. The Halifax and Stockholm studios have already been shuttered as part of this process.
As part of the restructuring, Ubisoft will return to a five-days-per-week in-office policy for all teams, which will include an annual allowance of working-from-home days. This shift in work policy comes amidst broader discussions in the tech and gaming industries about the balance between remote and in-office work.
Financial Results and Market Position
Amidst the news, Ubisoft shared early results for its latest quarter, reporting €330 million in sales, which it says are "primarily driven by the strong performance of its key franchises, including Assassin's Creed and Far Cry.">
The company remains confident in its market position and the potential of its new organizational structure to drive future growth. By focusing on high-quality, genre-specific development, Ubisoft aims to enhance its portfolio and deliver more compelling experiences to gamers worldwide.
Conclusion
The restructuring at Ubisoft marks a significant shift in the company's approach to game development and management. While the cancellations of several projects, including the Prince of Persia remake, are undoubtedly disappointing for fans and the industry, the long-term vision outlined by Ubisoft aims to create a more focused and efficient organization. Only time will tell how this new structure will impact the company's future releases and market performance, but for now, the gaming community will be watching closely.
