Ubisoft has initiated significant changes in its corporate structure as part of a strategic move to achieve €200 million in savings. The company announced the cancellation of six games and a delay of seven more, alongside a restructuring aimed at enhancing efficiency.
Studio Closures and Game Cancellations
The restructuring includes the closure of Ubisoft Stockholm, following the recent shutdown of Ubisoft Halifax. Notably, the canceled games feature a remake of Prince of Persia: Sands of Time and three new intellectual properties, one of which was a mobile game.
Shift to a New Creative House Structure
Ubisoft’s new Creative House structure will operate starting in early April. This model allows for “end-to-end responsibility” for various gaming brands across several studios. Each Creative House will focus on distinct genres and franchises.
Details of the Creative Houses
- Vantage Studios: Focuses on Assassin’s Creed, Far Cry, and Rainbow Six. Includes studios in Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia.
- Creative House 2: Will deliver competitive shooters like Ghost Recon and Splinter Cell.
- Creative House 3: Concentrates on live experiences and titles such as Brawlhalla and For Honor.
- Creative House 4: Enhances immersive worlds with games like Beyond Good and Evil and Might and Magic.
- Creative House 5: Aims at family-friendly gaming, including Just Dance and Invincible.
Financial Implications of the Restructuring
These changes are expected to lead to an operating loss of nearly €1 billion for the financial year 2026. CFO Frederick Duguet indicated that the restructuring would also incur a depreciation of capitalized research and development costs amounting to around €650 million.
Future Outlook and Strategies
Ubisoft plans to align its projects with the highest quality standards amidst a competitive market, focusing on the strongest potential endeavors. The restructuring aims to lower fixed costs by €500 million by 2028.
Return to Office Model
To support the new structure, Ubisoft will implement a five-day in-office work model. This shift is intended to enhance collaboration and drive the creative process.
Collectively, these changes reflect Ubisoft’s commitment to refining its operational model. By doing so, the company seeks to bolster its position in a highly competitive gaming landscape while aiming for sustainable growth.
