Ubisoft is preparing to close several studios over the next three years as part of a major company restructuring. The plan focuses on consolidating the company around five “creative houses” rather than maintaining many smaller, independent studios.
During a financial call, CEO Yves Guillemot said that while these decisions are difficult, they are necessary to create a more focused and sustainable organization. As part of this shift, Ubisoft is also canceling six games in development, including the highly anticipated Prince of Persia: The Sands of Time remake. Other canceled projects include three new IPs, a mobile game, and one unannounced title.
The restructuring follows a challenging period for Ubisoft. The company recently laid off employees at Massive Studios and lost The Division’s executive producer, Julian Gerighty, to DICE. Earlier this month, Ubisoft closed its Halifax mobile studio and Stockholm studio and began restructuring efforts at its Abu Dhabi and RedLynx locations.
Financially, Ubisoft is still projecting growth. CFO Frédérick Duguet reported net bookings of €330 million ($385.7 million) for Q3, up from €301.8 million last year, attributing the increase to strong partnerships and a “robust back catalog.” Despite this, layoffs continue, with 55 positions cut at Massive, 60 at RedLynx, and 29 in Abu Dhabi. Ubisoft also announced all studios will return to in-office work.
In addition to closures and layoffs, Ubisoft is delaying several games. One “important game” has been pushed from this year to next, and seven other titles were also delayed. Duguet said the canceled games “do not meet the new enhanced quality expectations under a more selective portfolio approach.”
The company’s new creative house initiative aims to give autonomy to studios over specific franchises. Each house will focus on a different genre, including flagship series, cooperative shooters, games as a service, fantasy, narrative-driven titles, and family-friendly games. Vantage Studios, partially owned by Tencent, will manage Ubisoft’s most well-known franchises, like Assassin’s Creed, Far Cry, and Rainbow Six, with the goal of turning them into annual billion-dollar brands.
Ubisoft’s next quarterly earnings call is scheduled for February 12, when the company may provide more details on layoffs and game delays.