Ubisoft Is Restructuring Everything: Cancellations, Delays, Studio Closures, and a Massive Company Reset
Ubisoft is going through one of the biggest shake-ups in its history. After years of declining performance, rising development costs, and several high-profile misfires, the company has initiated a sweeping restructuring effort that affects nearly every part of its business, from game development to studio operations to employee work policies. Here’s a clear breakdown of what’s happening, why it’s happening, and what it means for Ubisoft’s future.
Six Games Canceled: Including a Major Fan Favorite
Ubisoft has officially canceled six projects, including:
Prince of Persia: The Sands of Time Remake
Three unannounced new IPs
One unannounced mobile title
One additional unannounced project
The company says these games “did not meet enhanced quality standards” under its new direction. For fans, the loss of the Prince of Persia remake is especially painful, as it had already been delayed multiple times and was considered a passion project by many.
Seven More Games Delayed
In addition to cancellations, Ubisoft has delayed seven upcoming titles. One major game planned initially for FY26 has been pushed to FY27. While Ubisoft hasn’t confirmed which one, industry watchers believe it may be the remake of Assassin’s Creed IV: Black Flag. The delays are part of Ubisoft’s push to ensure “higher quality benchmarks” across all major releases.
Studio Closures and Layoffs Across the Company
As part of a €200 million cost-cutting plan, Ubisoft has begun closing studios and restructuring teams:
Studios Closed
Ubisoft Stockholm
Ubisoft Halifax
Studios Restructured
Massive Entertainment (The Division, Avatar)
RedLynx
Ubisoft Abu Dhabi
More layoffs are expected as Ubisoft consolidates development resources around fewer, larger projects.
Mandatory Return to Office
In a controversial move, Ubisoft has ordered all employees to return to full-time, five-day-a-week in-office work. Only a limited number of remote days will be allowed each year. The company claims this will improve collaboration and execution, but many employees are unhappy, especially after years of hybrid work.
A New Structure: Ubisoft’s “Creative Houses”
As part of Ubisoft’s massive restructuring, the company has reorganized all development teams into five Creative Houses, each responsible for specific genres and major franchises. This shift gives each house full ownership of its games from early concept to final release and represents the biggest structural change Ubisoft has made in decades.
Vantage Studios: This house focuses on Ubisoft’s open‑world blockbusters, the massive franchises that define the company’s identity. It oversees Assassin’s Creed, Far Cry, and Rainbow Six, ensuring these flagship series maintain high production values and consistent quality.
CH2: CH2 is dedicated to competitive and co‑op shooters, handling Ubisoft’s tactical and squad‑based franchises. This includes The Division, Ghost Recon, and Splinter Cell, all of which rely heavily on teamwork, strategy, and replayability.
CH3: CH3 manages Ubisoft’s live service games, titles designed for long‑term updates and evolving content. This house is responsible for For Honor, The Crew, Riders Republic, Brawlhalla, and Skull & Bones, focusing on ongoing support and community engagement.
CH4: CH4 oversees Ubisoft’s fantasy and narrative‑driven worlds, including some of the company’s most beloved creative franchises. This includes Anno, Rayman, Prince of Persia, and Beyond Good & Evil, emphasizing storytelling, world‑building, and artistic direction.
CH5: CH5 handles Ubisoft’s casual and family‑friendly games, the lighter experiences aimed at broad audiences. This includes Just Dance, Uno, and various Hasbro‑licensed titles, which remain strong performers in the casual gaming market.
Financial Impact: Over €1 Billion in Losses Expected
Due to cancellations, delays, and restructuring, Ubisoft expects an additional €1 billion in operating losses for FY2026. This is on top of previous years of underperformance. The company says the reset is necessary to “return to midterm growth.”
Big Bet on Generative AI
Despite industry skepticism, Ubisoft is investing heavily in player-facing generative AI. The goal is to reduce development time and cost, especially for massive open-world games. This includes AI-assisted NPC dialogue, procedural content, and automated testing tools.
Is This the Beginning of the End for Ubisoft as We Know It?
With so many cancellations, delays, studio closures, and a massive internal restructuring, it’s fair to ask the uncomfortable question: Is this the end of Ubisoft as we know it?
The short answer: Not necessarily, but the risk is higher than ever.
Ubisoft still owns some of the most valuable IP in gaming. Assassin’s Creed, Far Cry, Rainbow Six, The Division, Just Dance, and The Crew remain global powerhouses. Companies with big franchises don’t collapse overnight.
But the warning signs are real:
Multiple years of weak financial performance
An expected €1 billion loss this fiscal year
Skyrocketing AAA development costs
Several major projects canceled or rebooted
Employee morale shaken by layoffs and forced office returns
A shift toward fewer, safer franchises
This is the same pattern we’ve seen in companies that eventually sell off assets or accept acquisition offers.
Could Ubisoft Start Selling Its IP?
It’s not impossible. If Ubisoft’s financial situation worsens, selling or licensing IP could become a survival strategy. Their catalog is incredibly valuable, and other publishers, or even tech giants, would absolutely line up to buy:
Assassin’s Creed
Far Cry
Rainbow Six
The Division
Prince of Persia
Rayman
Just Dance
Even a single sale could bring in hundreds of millions. Right now, Ubisoft insists they’re committed to a long-term turnaround. But if the next two years don’t go well, investor pressure could push them toward selling IP, merging, or accepting an acquisition, something Ubisoft has resisted for decades.
The Real Question
This restructuring is Ubisoft’s attempt to avoid that fate. It’s a massive reset designed to stabilize the company and rebuild trust in its biggest franchises. But if this reset fails? Then yes, we may be witnessing the end of Ubisoft as we’ve known it for the last 20 years. The subsequent few releases will decide everything.