Ubisoft has announced a corporate restructuring and stopped the development of six games, including the new edition of “Prince of Persia: The Sands of Time”.
• Ubisoft with realignment
• Several games canceled or postponed
• Ubisoft shares collapse
The French game developer Ubisoft wants to realign itself and has discontinued several games in development as part of this. The company announced this in a press release late on Wednesday. The announcement came as a surprise and marks a significant change in the company’s strategy, which has been in a transformation process for years.
In addition to the new edition of “Prince of Persia: The Sands of Time”, which was already eagerly awaited in gaming circles, four previously unannounced games and a mobile project were also canceled. In addition, Ubisoft postponed seven other titles that were not named in order to be able to use resources more specifically and to ensure the quality of the games in the long term. According to “Gadgets 360”, the postponed release could also affect the remake of “Assassin’s Creed IV: Black Flag”, which according to rumors was actually supposed to come onto the market this year.
Comprehensive reorganization in response to market conditions
The cuts are part of a comprehensive reorganization of the company. In the future, Ubisoft wants to divide its studios into five specialized “Creative Houses” in order to be able to control projects more efficiently and pool creative resources, as the press release states. The group emphasizes that these measures are necessary in order to deliver high-quality games in the long term and to stabilize the operational business. In this context, “The Economic Times” points to the ongoing challenges of Ubisoft, which has had to struggle with product delays, disappointing sales results and strategic uncertainties in recent years.
“Today we are announcing a comprehensive reboot that will create the conditions for a return to sustainable growth,” Ubisoft CEO Yves Guillemot is quoted in the press release. According to company information, an operating loss of one billion euros is initially expected for the 2025/26 financial year – especially because of the cancellations and postponements that have now been announced. Net sales are expected to be around 1.5 billion euros, which corresponds to a gross margin decline of around 330 million euros compared to the forecast. “This is a devastating profit warning in a long line of catastrophic failures,” Bernstein analysts commented, according to MarketWatch.
Ubisoft shares plummet
The announcements have an immediate and massive impact on Ubisoft’s share price. On EURONEXT in Paris, shares temporarily fell by 37.51 percent to 4.142 euros on Thursday, which, according to “MarketWatch”, represents the largest daily loss since the company went public in 1996. Market observers attribute the fall in share prices to the massively lowered sales forecasts and the uncertainty surrounding operating results.
Ubisoft had already stopped or postponed projects several times in the past, including titles like “Ghost Recon Frontline” or “The Division Heartland,” which had repeatedly caused uncertainty in the gaming community and investors.
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