New Delhi: French video game publisher Ubisoft will undergo a reorganisation, splitting the company into five creative divisions. The revamp is set to commence in early April, dividing Ubisoft into five units by focusing on specific game genres. The company has also announced the cancellation of six games, including a Prince of Persia remake and three unannounced titles, along with the delays to seven other projects.
Under the latest structure, Ubisoft’s five Creative Houses will oversee their portfolios from brand development to sales, and will be responsible for their own budget. Each division will have to separate management teams. Their pay will be tied to metrics like player engagement and value creation. The first unit, Vantage Studios, established in November with the 1.16 billion euro investment from China’s Tencent, will manage Ubisoft’s biggest franchises, including Assassin’s Creed. The four other units will respectively focus on multiplayer shooters, live services, narrative-driven games, and casual and family games.
For 2026, Ubisoft now forecasts net bookings of around 1.5 billion euros and an operating loss of roughly 1 billion euros. This includes a 650 million euros hit from game cancellations and delays. It was previously expected that net bookings would be around 1.9 billion euros and that it would break even at the operating level. Ubisoft anticipates net debt of 150-200 million euros by the end of 2026, with cash reserves of 1.25-1.35 billion euros. Free cash flow is projected to be negative 400-500 million euros. The company’s cost reduction program of 100 million euros is expected to be fully achieved by March, one year after its initial target. It is also setting a new cost savings target of an additional 200 million euros over the next two years and will continue to consider potential asset sales.
