Ubisoft unveils sweeping restructuring, updates targets

French video game publisher Ubisoft said it will undergo a reorganisation, splitting the company into five creative divisions, while it also revised its financial outlook.

The revamp, set to commence in early April, divides Ubisoft into five units focusing on specific game genres.

The company also announced the cancellation of six games, including a “Prince of Persia” remake and three unannounced titles, alongside delays to seven other projects.

Under the new structure, Ubisoft’s five “Creative Houses” will oversee their portfolios from brand development to sales, and be responsible for their own budget.

Each division will have separate management teams. Their pay will be tied to metrics like player engagement and value creation, the company said.

The first unit, Vantage Studios, established in November with a €1.16 billion 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 and an operating loss of roughly €1 billion. This includes a €650m hit from game cancellations and delays.

It previously said it was expected net bookings of around €1.9 billion and to break even at operating level.

Ubisoft anticipates net debt of €150-250m by the end of 2026, with cash reserves of €1.25-1.35 billion. Free cash flow is projected to be negative €400-500m.

The company’s cost reduction programme of €100m 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 €200m over the next two years and will continue to consider potential asset sales.

The company withdrew its prior fiscal 2026-27 guidance and plans to outline medium-term projections in May 2026.