Ubisoft plans to close several studios over the next three years as part of a major restructuring of the company. The announcement came during the company's financial call on Wednesday, when Ubisoft executives discussed refocusing their business around five “creative houses” instead of as many independent studios.
“We will also selectively close several studios and continue to restructure the entire group,” Ubisoft CEO Yves Guillemot said during a conference call. “While these decisions are difficult, they are necessary to build a more focused, effective and sustainable organization over the long term.”
Also key to Ubisoft is the cancellation of six games in active development, including the long-awaited Prince of Persia: The Sands of Time remake. The other titles consisted of four unannounced projects that included three new IPs and a mobile game.
The announcement follows a difficult year for Ubisoft's studios. The news comes on the heels of recent layoffs at Massive Studios and the loss of The Division executive producer Julian Gerighty to DICE.
Prince of Persia and 5 other games canceled by Ubisoft, Assassin's Creed: Black Flag Remake postponed
Ubisoft is canceling Prince of Persia: The Sands of Time remake, despite expectations that it would be released this year.
The company also closed its Halifax mobile studio and its Stockholm studio earlier this month and began restructuring its Abu Dhabi and RedLynx studios as part of the company's relocation, Ubisoft CFO Frédérick Duguet said.
Game Rant reached out to Ubisoft to clarify the timeline of the closure and to see if we could get more information on when the affected studios would be announced, but Ubisoft declined to comment.
What Ubisoft's restructuring really means
Along with positive financial projections, company restructuring plans were presented.
Duguet shared a net booking guidance of €330 million ($385,705,650) for the company's third quarter. Duguet attributed the performance to stronger-than-expected partnerships and what he described as a “robust back catalog,” even as the company prepares to reduce its studio footprint.
In comparison, Ubisoft reported net bookings of €301.8m in the third quarter and €784m for the nine months ending 2024-25, down 33.8% on the previous year. That's $352,745,349 and $916,343,120 respectively.
As a publicly traded company, Ubisoft needs to convey power to its investors. Still, its positive financial projections, along with the announcement of studio closings and layoffs, appear to be undermining employees affected by the restructuring.
55 people lost their jobs at Massive, 60 at RedLynx and 29 jobs were cut at the Abu Dhabi studio. All Ubisoft studios will also return to office work, CFO Frédérick Duguet announced on the call.
Ubisoft is canceling a total of six games in active development. “[These games] they do not meet the new expectations of increased quality within a more selective portfolio approach,” Duguet said, without specifying the game titles.
In addition, an “important game” is being postponed from this year to next, Duguet revealed, although he said he could not provide further details at this time. Seven other titles were also delayed.
Ubisoft is putting all of its eggs into this new creative house initiative, splitting its franchises into autonomous, independent studios that have full control over Ubisoft's flagship franchises. The company intends to return to “robust cash flow generation” over the next three years under the new plan, Duguet said.
Each of these creative houses will cover a different genre. Genres include its flagship series, co-op shooters, games as a service, fantasy, narrative experiences and family-friendly games.
Vantage Studios, a subsidiary of Ubisoft and a studio in which Chinese conglomerate Tencent holds a 26% economic stake, will take control of Ubisoft's most recognized franchises, including Assassin's Creed, Far Cry and Rainbow Six, with the aim of “turning them into annual billion-dollar brands,” the company said in a press release.
Other houses will break the remaining franchises.
Ubisoft is holding its quarterly earnings call next month on February 12, where there may be new information about layoffs and specific game delays.
