Ubisoft plans to close several studios over the next three years as part of a sweeping restructuring of the company. The announcement came during a company financials call on Wednesday as Ubisoft executives discussed focusing its operations around five “creative houses” instead of so many independent studios.
“We will also selectively close several studios and continue restructuring across the group,” Ubisoft CEO Yves Guillemot said during the conference call. “Although these decisions are difficult, they are necessary for us to build a more focused, efficient and sustainable organization for the long term.”
Ubisoft's pivot also includes canceling 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. This news comes on the heels of recent layoffs at Massive Studios and the loss of The Division's executive producer, Julian Gerighty, to DICE.
Prince of Persia and 5 other games canceled by Ubisoft, Assassin's Creed: Black Flag Remake delayed
Ubisoft is canceling the remake of Prince of Persia: The Sands of Time, despite expectations that it would be released this year.
The company also closed its Halifax mobile studio and began restructuring its Abu Dhabi and RedLynx studios as part of the company's repositioning, Ubisoft chief financial officer Frédérick Duguet said on the call.
Game Rant reached out to Ubisoft for clarification on the timeline of the closures 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
The company's restructuring plans were presented together with positive financial forecasts.
Duguet shared an indicative net booking figure 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% from the previous year. That's $352,745,349 and $916,343,120 respectively.
As a publicly traded company, Ubisoft needs to convey strength to its investors. Still, its positive financial projections along with the announcement of studio closings and layoffs appear to understate the employees affected by the restructuring.
55 people lost their jobs at Massive, 60 people at RedLynx, and 29 positions were eliminated at the Abu Dhabi studio. All Ubisoft studios will also return to office work, CFO Frédérick Duguet announced during the call.
Ubisoft cancels a total of six games in active development. “[These games] does not meet the new improved quality expectations under a more selective portfolio approach,” Duguet said without elaborating on game titles.
In addition, an “important game” is delayed 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 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” within the next three years under the new plan, Duguet said.
Each of these creative houses will cover different genre. Genres include its flagship series, cooperative shooters, games as a service, fantasy, narrative experiences, and family-friendly games.
Vantage Studios, a Ubisoft subsidiary and the studio in which Chinese conglomerate Tencent has a 26% financial stake, will take control of Ubisoft's most recognized franchises, including Assassin's Creed, Far Cry and Rainbow Six, with the goal “to turn them into annual billionaire brands”, the company wrote in its press release.
The other houses will break up the remaining franchise agreements.
Ubisoft is holding its quarterly earnings call next month on February 12, where there may be new information about layoffs and specific game delays.
