Ubisoft Announces Major Reorganization with New Creative Houses and Game Cancellations
After weeks of speculation surrounding studio closures and layoffs, French video game publisher Ubisoft announced a significant reorganization on Wednesday. The company will divide its operations into five “Creative Houses,” each dedicated to a specific game genre. This restructuring, however, comes with a cost: six games currently in development, including the highly anticipated “Prince of Persia: The Sands of Time” remake, have been scrapped.
A New Decentralized Structure
The five decentralized Creative Houses represent a new model for Ubisoft. According to the company, these houses “will combine game development and go-to-market functions with a gamer-centric approach, and be fully responsible for brand development, content strategy as well as editorial direction.” They will be led by dedicated, incentivized teams with expertise in their respective genres and will have full financial ownership and accountability for economic performance.
Impact on Game Development
Alongside the cancellation of the “Prince of Persia: The Sands of Time” remake, Ubisoft has discontinued four unannounced games and one mobile title. These decisions were made based on new quality standards and a more selective portfolio prioritization. However, Ubisoft is also allocating additional development time to seven unnamed games to ensure they meet enhanced quality benchmarks and maximize long-term value. One unannounced title, initially planned for fiscal year 2026, has been delayed to fiscal year 2027.
New IPs and Future Projects
Despite the cancellations, Ubisoft is actively developing four new intellectual properties (IPs), including “March of Giants,” recently acquired from Amazon. The specific Creative Houses responsible for these new IPs will be announced at a later date. The company is also returning to a five-days-per-week in-office policy, with an annual allowance for remote work.
Financial Performance and Strategic Reset
Ubisoft reported €330 million in sales for the latest quarter, driven by strong partnerships and a robust back catalog. Yves Guillemot, Founder and CEO of Ubisoft, described the reorganization as a “major reset” designed to create conditions for sustainable growth. He emphasized the need to focus on exceptional quality games within the Open World Adventures and Games-as-a-Service (GaaS) pillars of their strategy.
Guillemot stated, “On the one hand, the AAA industry has become persistently more selective and competitive with rising development costs and greater challenges in creating brands. On the other hand, exceptional AAA games, when successful, have more financial potential than ever.”
Looking Ahead
The portfolio refocus is expected to impact Ubisoft’s financial trajectory in the short term, particularly in fiscal years 2026 and 2027. However, the company believes this reset will strengthen its position and enable it to renew sustainable growth and robust cash generation. Ubisoft aims to reclaim creative leadership and build value for players and stakeholders over the long term. For more information on the gaming industry, check out GameSpot.
