\n<\/p>\n
Jan 21 – French video game publisher Ubisoft will undergo a reorganization, splitting the company into five creative divisions, it said on Wednesday \u200bwhile also revising its financial outlook.<\/p>\n
The revamp, set to commence in \u200cearly April, divides Ubisoft into five units focusing on specific game genres. The company also announced the \u200ccancellation of six games, including a “Prince of Persia” remake and three unannounced titles, alongside delays to seven other projects.<\/p>\n
Under the new structure, Ubisoft’s five “Creative Houses” will oversee their portfolios from brand development to sales, and be responsible for their own \u2060budget.<\/p>\n
Each division will have separate \u200cmanagement teams. Their pay will be tied to metrics like player engagement and value creation, the company said.<\/p>\n
The first unit, Vantage \u200dStudios, established in November with a 1.16 billion euro 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, \u200blive services, narrative-driven games, and casual and family games.<\/p>\n
For 2026, \u200cUbisoft now forecasts net bookings of around 1.5 billion euros and an operating loss of roughly 1 billion euros. This includes a 650 million euros hit from game cancellations and delays. It previously expected net bookings of around 1.9 billion euros and to break even at operating level.<\/p>\n
Ubisoft anticipates net debt of 150-250 million \u2060euros by the end of 2026, with \u200bcash reserves of 1.25-1.35 billion euros. Free cash \u200bflow is projected to be negative 400-500 million euros.<\/p>\n
The company’s cost reduction program of 100 million euros is expected to be fully \u200dachieved by March, one \u2060year after its initial target. It is also setting a new cost savings target of an additional 200 million euros over the next two \u2060years and will continue to consider potential asset sales.<\/p>\n
The company withdrew its prior fiscal 2026-27 guidance \u200cand plans to outline medium-term projections in May 2026.<\/p>\n
(Reporting by Leo \u200cMarchandon in Gdansk; Editing by Matt Scuffham)<\/p>\n<\/p><\/div>\n