Ubisoft shares sink 33% after Assassin's Creed maker introduces reorganization, cancels 6 games
Firm expects operational loss of around $1.17B in fiscal year ending in 2026
ISTANBUL
France-based vidoegame maker Ubisoft's shares plummeted around 33% on Thursday after the maker of the "Assassin's Creed" videogame series announced reorganization and cancelled six games.
"Today, Ubisoft announces a major organizational, operational and portfolio reset designed to reclaim its creative leadership, regain agility and drive a sharp rebound, renewing the Group’s trajectory toward sustainable growth and robust cash generation," Ubisoft said in a statement.
The reogranization will be delivered through three pillars, including a new operating model, a refocused portfolio with a meaningfully revised three-year roadmap, and the rightsizing of the organization, according to the statement.
"Ubisoft has discontinued 6 games that do not meet the new enhanced quality as well as more selective portfolio prioritization criteria at Group level. These include Prince of Persia The Sands of Time remake as well as 4 unannounced titles, including 3 new IP’s, and a mobile title," it noted.
Following a €650 million ($760 million) write-down brought on by the restructuring, the company stated that it anticipated an operational loss of around €1 billion ($1.17 billion) in the fiscal year ending in 2026.
"The Group's short-term financial trajectory will be significantly impacted by the portfolio refocus, especially in fiscal years 2026 and 2027, but this reset will strengthen the Group and enable it to renew with sustainable growth and robust cash generation," Ubisoft CEO and founder Yves Guillemot said.
Ubisoft also announced that its studios in Malmo, Helsinki, and Abu Dhabi will be restructured while those in Halifax, Canada, and Stockholm would close.
By March 2028, the firm anticipates that cost-cutting measures would save 500 million euros ($580 million) and reduce fixed expenses from €1.75 billion in the fiscal year ending in 2023 to €1.25 billion on a run-rate basis.
For the fiscal year ending in 2026, Ubisoft projected net bookings of about €1.5 billion, a decrease of €330 million from earlier projections.
