Ubisoft dropped a bombshell during its financial call on Wednesday. The gaming giant is initiating a sweeping restructuring plan. Consequently, the company will close several studios over the next three years.
CEO Yves Guillemot described the difficult decisions as necessary. He emphasised that this move will build a more focused and efficient organisation.
Ubisoft is pivoting away from its network of independent studios. Instead, the company will reorganise around five “creative houses”. These houses will focus on specific genres, including cooperative shooters, games as a service, and narrative-driven experiences.
Vantage Studios will take control of Ubisoft’s most recognised franchises. This subsidiary will manage Assassin’s Creed, Far Cry, and Rainbow Six. Notably, Tencent holds a 26% economic interest in Vantage. Their stated goal is to turn these titles into “annual billionaire brands”.
This restructuring comes with significant collateral damage. Ubisoft has cancelled six games currently in active development. Unfortunately, this includes the long-awaited Prince of Persia: The Sands of Time remake. The other axed titles included three unannounced new IPs and a mobile game.
Furthermore, layoffs have already impacted the workforce. Massive Studios lost 55 employees, and RedLynx cut 60 staff members. Additionally, 29 positions were eliminated at the Abu Dhabi studio. The company also closed its Halifax and Stockholm studios earlier this month.
Despite the turmoil, Ubisoft remains optimistic about its financials. CFO Frédérick Duguet shared indicative Q3 net bookings of €330 million ($385.7 million). He attributed this to strong partnerships and a robust back catalogue. However, bookings for the nine months ending 2024-25 are down 33.8% compared to the previous year.
Moreover, Duguet announced that all studios will return to in-office work. We expect further details on layoffs and delays during the next quarterly earnings call on February 12.