French Game Developer Ubisoft Expects Massive Losses - Ubisoft slashes studios and cancels six games in drastic cost-cutting overhaul
Ubisoft has announced a major restructuring plan to cut costs and refocus its game development. The company expects an operating loss of €1 billion for the 2025/26 fiscal year, pushing it to launch the 'third and final phase' of its savings strategy. CEO Yves Guillemot called the overhaul a 'radical step' as the firm consolidates its studios into five specialised 'creative hubs'.
The restructuring follows years of financial strain. Ubisoft has already cut around 3,000 jobs and closed multiple studios worldwide in previous cost-saving efforts. Now, roughly half of its remaining global studios will be absorbed into the new divisions, each focusing on a different game genre.
Alongside the reorganisation, Ubisoft has cancelled six games in development, including a highly anticipated remake of Prince of Persia: The Sands of Time. Seven other titles have also faced delays. The company aims to save an additional €200 million over the next two years through these changes. While details on the five hubs’ specialisations remain unclear, the move signals a shift in how Ubisoft manages its projects. The plan comes as the company grapples with a projected €1 billion loss, marking one of its toughest financial periods in recent history.
The restructuring will reshape Ubisoft’s development process, with fewer studios but more focused production lines. The cancelled and delayed games reflect tighter budget controls as the company works to stabilise its finances. The next two years will test whether these changes can reverse its current losses.
