Following weeks of speculation fueled by studio closures and layoffs, French video game publisher Ubisoft announced on Wednesday a reorganization plan that will structure the company into five distinct “Creative Houses,” each specializing in a specific genre.
As part of this overhaul, Ubisoft has canceled six ongoing projects, including the much-anticipated “Prince of Persia: The Sands of Time” remake.
The five new decentralized houses will integrate game development and market functions with a gamer-focused strategy, taking full responsibility for brand development, content strategy, and editorial direction. Each house will feature distinct creative genres, led by skilled teams dedicated to those areas, and will have complete financial control and accountability for economic performance.
During a media briefing, Ubisoft executives did not specify the number of further layoffs, following the closure of its Halifax and Stockholm studios, but indicated that additional workforce reduction details will be disclosed in relation to the upcoming quarterly earnings on February 12.
The five Creative Houses include: CH1 (Vantage Studios), focused on enhancing major franchises into annual winners; CH2 for competitive and cooperative shooters; CH3 for select Live experiences; CH4 for immersive fantasy and narrative-driven games; and CH5, aimed at revitalizing casual and family-friendly titles.
In addition to scrapping the “Prince of Persia” remake, Ubisoft has also halted four unannounced projects and one mobile game that did not meet new quality standards set by the company. Furthermore, Ubisoft will extend development time for seven unnamed titles to ensure they align with enhanced quality benchmarks and maximize long-term value.
Ubisoft is developing four new intellectual properties, including “March of Giants,” which was recently acquired from Amazon. The specific Creative Houses for these games will be revealed later. As part of the restructuring, the company will also reintroduce a five-days-per-week in-office policy, allowing for some remote work days each year. Amidst this transition, Ubisoft reported €330 million in sales for its latest quarter, attributing this performance to strong partnerships and a resilient back-catalog.
Yves Guillemot, Ubisoft’s Founder and CEO, emphasized the need for a reset amid growing challenges in the AAA gaming industry. He articulated that while successful games now hold immense financial potential, the transformation aims to achieve sustainable growth in the long run. The restructuring will facilitate a more focused and efficient organization, allowing Ubisoft to better navigate industry challenges and reclaim creative leadership.
