Ubisoft Announces Major Reorganization, Closes Studios, Cancels Games Including Prince of Persia Remake
French video game publisher Ubisoft has announced a significant reorganization of its company structure, leading to the closure of several studios, layoffs, and the cancellation of six games in development, including an eagerly anticipated remake of the classic title, Prince of Persia: The Sands of Time. The move signals a major shift in Ubisoft's business strategy as it aims to streamline operations and focus on quality and profitability.
The Reorganization: Five Creative Houses
As part of the reorganization, Ubisoft will divide its operations into five distinct "Creative Houses," each dedicated to a specific creative genre. These houses will combine game development and go-to-market functions with a gamer-centric approach, and will be fully responsible for brand development, content strategy, and editorial direction.
The five Creative Houses are as follows:
CH1 (Vantage Studios)
Focused on scaling and extending Ubisoft's largest and established franchises to turn them into annual billion-dollar brands. Brands include:
- Assassin's Creed
- Far Cry
- Rainbow Six
CH2
Dedicated to competitive and cooperative shooter experiences. Brands include:
- The Division
- Ghost Recon
- Splinter Cell
CH3
Designed to operate a roster of select, sharp Live experiences. Brands include:
- For Honor
- The Crew
- Riders Republic
- Brawlhalla
- Skull & Bones
CH4
Dedicated to immersive fantasy worlds and narrative-driven universes. Brands include:
- Anno
- Might & Magic
- Rayman
- Prince of Persia
- Beyond Good & Evil
CH5
Focused on reclaiming position in casual and family-friendly games. Brands include:
- Just Dance
- Idle Miner Tycoon
- Ketchapp
- Hungry Shark
- Invincible: Guarding the Globe
- Uno
- Hasbro
Canceled Games and Layoffs
Along with the Prince of Persia: The Sands of Time remake, Ubisoft has discontinued four unannounced games and one mobile title that "do not meet the new enhanced quality as well as more selective portfolio prioritization criteria at Group level." The company cited a commitment to higher quality standards and a more selective approach to its game portfolio.
Additionally, Ubisoft has not confirmed the total number of layoffs resulting from the reorganization, but noted that further details on workforce reduction will be announced in connection with the company's upcoming quarterly earnings results on February 12. The Halifax and Stockholm studios have already been shuttered as part of the restructuring.
Focus on Quality and New IPs
Despite the cancellations and layoffs, Ubisoft is doubling down on quality and innovation. The company will allocate 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 initially planned to release in fiscal year 2026, which has now been delayed to fiscal year 2027.
Ubisoft also announced that four new intellectual properties (IPs) are currently in development, including 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.
Return to In-Office Policy
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 reflects a broader trend in the gaming industry towards more traditional work models, despite the remote work adaptations seen during the pandemic.
Financial Performance
Amid the restructuring news, Ubisoft shared early results for its latest quarter, reporting €330 million in sales. The company states that these sales are "primarily driven by an overperformance linked to partnerships and reflecting a robust back-catalog." However, Ubisoft acknowledged that the AAA industry has become increasingly challenging, with rising development costs and increasing competition.
Conclusion
Ubisoft's reorganization marks a significant turning point for the company as it navigates the complexities of the modern gaming landscape. By focusing on quality, streamlining operations, and investing in new IPs, Ubisoft aims to position itself for long-term success. However, the cancellations and layoffs are sure to be felt by the gaming community and the industry at large, as the company resets its priorities and refines its strategy.
