After weeks of speculation following reports of studio closures and a series of job cuts, French video game publisher Ubisoft announced Wednesday that it will begin a company restructuring that will split the business into five “creative houses” focused on specific creative genres.
As a result, six games in development at Ubisoft have been canceled, including the upcoming remake of Prince of Persia: The Sands of Time.
The five decentralized houses that are part of the new model “will combine game development and go-to-market capabilities in a gamer-centric approach, with full responsibility for brand development, content strategy and editorial direction.” They will be “formed by distinct creative ‘genres’, led by high-profile, encouraged and dedicated teams with unique expertise in these genres.” ” and “takes full financial ownership and takes into account economic performance.”
In a media call Wednesday, Ubisoft executives declined to say how many more jobs would be cut as the 17,000-employee company is being restructured (its Halifax and Stockholm studios are currently closed), but said details of the cuts would be shared at a later date.
According to Ubisoft, the five new creative houses include: The first one is Vantage Studios, a new subsidiary of Ubisoft that began operations last year.
- Creative House 1 (Vantage Studios) — Ubisoft’s largest focus on scale and scalability.
Establish a franchise and turn it into a millionaire brand every year.
o Brand: Assassin’s Creed, Far Cry, Rainbow Six - Creative House 2 — Specialized in competitive and cooperative shooting experiences.
o Brands such as The Division, Ghost Recon, and Splinter Cell - Creative House 3 — Designed to help you control a carefully selected, sharp live experience.
o Brands including For Honor, The Crew, Riders Republic, Brawlhalla, Skull &
bone - Creative House 4 — Specializing in immersive fantasy and story-driven worlds.
o Brands including Anno, Might & Magic, Rayman, Prince of Persia and Beyond
good and bad - Creative House 5 — Focused on regaining its place in casual and family games.
o Just Dance, Idle Miner Tycoon, Ketchapp, Hungry Shark,
Invincible: Guarding the Glove, Uno, Hasbro
In addition to the “Prince of Persia: The Sands of Time” remake, Ubisoft has canceled four unreleased games and one mobile title for “not meeting the newly enhanced quality.”
More selective portfolio prioritization criteria at group level. ”
Ubisoft said it will allocate additional development time to seven unannounced games, including an unannounced title originally scheduled for release in fiscal 2026 that has now been delayed to fiscal 2027 to “ensure they meet enhanced quality benchmarks and maximize long-term value creation.”
Ubisoft says four new IPs are currently in development, including the game March of Giants it recently requested from Amazon, and the creative house to which these games will be assigned will be announced at a later date.
As part of the reorganization, Ubisoft will return all teams to a five-day work week policy, which includes working from home days throughout the year.
Amid Wednesday’s news, Ubisoft released initial results for its latest quarter, reporting sales of 330 million euros, which it said were “primarily driven by excess performance related to partnerships and reflecting a strong back catalogue.” Full earnings will be reported on February 12, as previously announced.
“Meanwhile, the AAA industry continues to become more selective and competitive due to rising development costs and significant challenges in brand creation,” Ubisoft founder and CEO Yves Guillemot said in a statement Wednesday. “Meanwhile, exceptional AAA games, if successful, have more financial potential than ever before. In this context, we are today announcing a major reset built to create the conditions for a return to sustainable growth over time. We are transforming our model. At the heart of this transformation are our Creative Houses, an integrated business unit that brings together production and publishing and our relationship with gamers. Each is built around a clear genre and brand focus, led by a dedicated leadership team, and relies on a more decentralized creative organization with faster decision-making and best-in-class cross-functional core services to support and serve each Creative House.”
“To put Creative House in the best position for success, we have decided to refocus our portfolio with a meaningfully revised three-year roadmap and accelerate our cost reduction efforts to right-size the organization and ensure quality improvements. To maximize long-term value, we are discontinuing some projects currently in development and giving additional time to certain games. We are also selectively closing some studios and continuing to restructure the entire group. “Taken together, these measures represent a decisive turning point for Ubisoft and reflect our determination to meet challenges head-on in order to rebuild the Group in the long term.” The repositioning of the portfolio will have a significant impact on the Group’s short-term financial trajectory, particularly in financial years 2026 and 2027, but this repositioning has strengthened the Group and is entering a new phase with sustained growth and strong cash generation. and build value for players and stakeholders over the long term. ”