Ubisoft has canceled six games, including the highly anticipated Prince of Persia: The Sands of Time remake, and closed two studios as part of a sweeping restructuring. The French video game publisher also delayed seven other titles, citing a need to refocus its operations for long-term growth. Shares plummeted 33% on Thursday following the announcement.
Immediate Action & Core Facts
The restructuring includes the closure of studios in Stockholm, Sweden, and Halifax, Canada, with additional restructuring at studios in Abu Dhabi, Helsinki, and Malmö. Among the canceled games are four unannounced titles, including three based on new intellectual property (IP) and a mobile game. The company expects to save 500 million euros ($580 million) through cost-cutting measures by March 2028.
Deeper Dive & Context
Financial Impact and Future Outlook
Ubisoft anticipates an operating loss of around 1 billion euros ($1.17 billion) in the financial year ending 2026, following a 650 million euro write-down due to the restructuring. The company has also revised its net bookings forecast for 2026 to 1.5 billion euros ($1.75 billion), a drop of 330 million euros from previous guidance. CEO Yves Guillemot stated that the changes are necessary to create a more focused, efficient, and sustainable organization.
Industry Context and Fan Reactions
The move comes as the gaming industry increasingly turns to remakes and remasters, with titles like Super Mario Galaxy and Metal Gear Solid 3 proving popular in 2025. The cancellation of the Prince of Persia remake, which sold millions of copies in 2003, has left many fans questioning the decision. The closure of Ubisoft Halifax, which formed a union just weeks before the announcement, has also drawn attention to labor concerns within the company.
Company Rationale
Ubisoft has framed the restructuring as a 'major reset' aimed at sustainable growth. Guillemot emphasized that the decisions, while difficult, are necessary to strengthen the company's long-term prospects. The company has not ruled out selling assets as part of its financial strategy. The restructuring is expected to reduce fixed costs to 1.25 billion euros ($1.46 billion) by March 2028, down from 1.75 billion euros ($2.35 billion) in the financial year ending 2023.
Broader Implications
The restructuring reflects broader challenges in the gaming industry, including post-pandemic financial struggles and delays in major releases. Ubisoft's decision to cancel multiple games and close studios underscores the company's efforts to adapt to a changing market landscape. The move has raised questions about the future of its franchises and the impact on employees affected by the closures.