Ubisoft Resets Strategy With Studio Closures And Canceled Games

After months of mounting speculation and a string of leaks, Ubisoft, the French video game giant, has unveiled a sweeping reorganization that marks one of the most dramatic pivots in its decades-long history. The company’s announcement on January 21, 2026, sent shockwaves through the gaming world: not only would Ubisoft be restructuring its entire operation into five specialized "Creative Houses," but it would also be canceling six games—including the long-delayed Prince of Persia: The Sands of Time remake—and closing two studios as part of a bid to reset its creative and financial trajectory.

The changes come at a time when the AAA games industry is more competitive and unforgiving than ever. Ubisoft’s CEO, Yves Guillemot, did not mince words in his statement, acknowledging that, "the AAA industry has become persistently more selective and competitive with rising development costs and greater challenges in creating brands." According to Variety, Guillemot emphasized that while exceptional AAA games have greater financial potential than ever, the risks and stakes have also climbed sharply. "In this context, today we are announcing a major reset built to create the conditions for a return to sustainable growth over time," he said.

Central to this transformation is the introduction of five "Creative Houses"—decentralized business units each focused on a specific genre and set of franchises, with both creative and financial autonomy. The first of these, Vantage Studios, was established in 2025 with backing from Tencent and is charged with scaling Ubisoft’s most lucrative franchises—Assassin’s Creed, Far Cry, and Rainbow Six—into what the company calls "annual billionaire brands." The other four Creative Houses will focus on competitive and cooperative shooters (The Division, Ghost Recon, Splinter Cell); live experiences (For Honor, The Crew, Riders Republic, Brawlhalla, Skull & Bones); immersive fantasy and narrative-driven universes (Anno, Might & Magic, Rayman, Prince of Persia, Beyond Good & Evil); and casual and family-friendly games (Just Dance, Idle Miner Tycoon, Ketchapp, Hungry Shark, Invincible: Guarding the Globe, Uno, and Hasbro titles).

According to IGN, the first and most visible impact of this reorganization has been the closure of Ubisoft’s Halifax and Stockholm studios. The company also confirmed that its teams in Abu Dhabi, RedLynx, and Massive are undergoing restructuring, though the full extent of layoffs remains unclear. Details on workforce reductions are expected to be shared at a later date, but the mood within the company is understandably tense.

One of the most painful casualties of this reset is the Prince of Persia: The Sands of Time remake. Originally announced in 2020 and beset by repeated delays, the project had already been rebooted once and was, as of last year, targeting a release window between January and March 2026. But Ubisoft ultimately decided to halt development. In a message posted by the Prince of Persia team, the developers admitted, "the project had real potential, [but] we weren't able to reach the level of quality you deserve, and continuing would have required more time and investment than we could responsibly commit. And we didn't want to release something that fell short of what The Sands of Time represents."

The canceled projects don’t stop there. Four unannounced titles—including three new IPs and a mobile game—were also scrapped for failing to meet Ubisoft’s new "enhanced quality and more selective portfolio prioritization criteria." The company has made it clear that its future will be built on fewer, higher-quality games, with seven unnamed projects now receiving additional development time. Among these is an unannounced title, widely rumored to be an Assassin’s Creed Black Flag remake, which has been delayed from fiscal year 2026 to 2027.

Ubisoft’s new structure is designed to speed up decision-making and empower each Creative House to take full responsibility for both the creative direction and financial performance of its assigned franchises. "Each one is built around a clear genre and brand focus, with full responsibility and financial ownership, led by dedicated leadership teams. It is a radical move, relying on a more decentralized creative organization with faster decision making and best-in-class cross functional core services supporting and serving each Creative House," Guillemot explained, as reported by PC Gamer.

While the company is betting big on this new model, it is also bracing for short-term pain. Ubisoft revised its full-year financial guidance downward, now expecting net bookings of around €1.5 billion—a reduction of €330 million compared to previous forecasts. The company reported €330 million in sales in its latest quarter, a figure it attributes to "overperformance linked to partnerships and reflecting a robust back-catalog." The full earnings report is slated for February 12, 2026.

In addition to the organizational overhaul, Ubisoft is changing how its employees work. All staff are now required to return to a five-days-per-week in-office schedule, though with an annual allowance of remote work days. This move, part of a wider "cost reduction initiative," has sparked debate within the company, especially among those who had grown accustomed to flexible work arrangements during the pandemic years.

Despite the turbulence, Ubisoft is not abandoning innovation. Four new IPs are currently in development, including March of Giants, which the company recently acquired from Amazon. The Creative Houses to which these new projects will be assigned have yet to be announced, but Ubisoft insists that this is just the beginning of a new creative era.

Guillemot summed up the company’s vision for the future in his statement: "Taken together, these measures mark a decisive turning point for Ubisoft and reflect our determination to confront challenges head-on to reshape the Group for the long term. The portfolio refocus will have a significant impact on the Group’s short term financial trajectory, particularly 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 is entering a new phase – one designed to reclaim creative leadership and build value for players and stakeholders over the long term."

For fans of Prince of Persia and other legacy franchises, the news is bittersweet. While the cancellation of beloved titles is a hard pill to swallow, Ubisoft’s willingness to make tough choices may well determine its success in the cutthroat world of modern game publishing. Only time will tell if this radical reset will pay off, but one thing’s for sure: Ubisoft is betting everything on a leaner, more focused future.