"Radical Step": Ubisoft Aims for Massive Savings

For Ubisoft, it's about survival. The French publisher wants to return to the path of success in the long term with a fundamental realignment and is prepared to suffer first. On Wednesday evening, Ubisoft presented its new structure in a statement. Central to this are five “Creative Houses” that clearly divide brands and game concepts.

This is accompanied by cost-saving measures: In the next two years, Ubisoft wants to save 200 million euros – in addition to the 300 million euros already saved, which Ubisoft states it has saved in recent years. This means further job cuts. Ubisoft recently laid off employees at Massive Entertainment.

“Prince of Persia” Remake Shelved

A total of six games that were already in development are falling victim to the austerity measures. Ubisoft specifically names the already announced remake of “Prince of Persia: Sands of Time,” which no longer fits the business concept: Ubisoft will focus primarily on open-world games in the style of “Assassin's Creed” and “Games as a Service” games in the future – meaning multiplayer titles like “Rainbow Six Siege” that can generate long-term revenue. Ubisoft does not name the other five games whose development is being terminated; they were presumably not yet publicly known.

Ubisoft CEO Yves Guillemot speaks in a statement (PDF) of a “big reset.” “These measures mark a crucial turning point for Ubisoft and reflect our determination to tackle challenges head-on and reposition the group for the long term. The realignment of the portfolio will have a significant impact on the group's short-term financial performance, particularly in fiscal years 2026 and 2027,” warns Guillemot.

In the long term, however, this “restart” is intended to strengthen the French game developer and lead it back to success with sustainable growth, hopes the company founder. In recent years, Ubisoft has developed several costly flops, including the pirate game “Skull and Bones.” Ubisoft is supported, among others, by investments from Tencent.

“Anno” in Creative House 4

What the further austerity measures mean for German Ubisoft studios is unclear. Ubisoft locates the “Anno” series from the Mainz studio in Creative House 4, where “Might & Magic” and “Beyond Good and Evil” are also based. According to the industry magazine Gameswirtschaft, Ubisoft employs around 800 people in Germany.

The Ubisoft share lost 8 percent in value after the announcement of the austerity measures. For a year, the share has been down over 50 percent.

(dahe)