ArticleUbisoft
Ubisoft Announces a Major Organizational, Operational and Portfolio Reset
21 Jan 20267 pages~17 min full read
Ubisoft is restructuring into five specialized Creative Houses—Vantage Studios, competitive shooters, live-service, immersive fantasy, and casual/family—to grant units full financial and creative ownership over their genres.
See it on page 4The company is targeting a total fixed cost reduction of €500 million since FY2023, aiming for a run-rate of €1.25 billion in total fixed costs by March 2028.
See it on page 6Financial outlooks for FY2026 project net bookings of approximately €1.5 billion and a non-IFRS EBIT loss of roughly €1 billion, driven by a €650 million one-off accelerated depreciation.
See it on page 7The portfolio reset includes the cancellation of six games, such as the Prince of Persia: The Sands of Time remake, and the delay of seven additional titles to improve quality.
See it on page 5To support the new decentralized operating model, Ubisoft is mandating a return to five days per week on-site for all employees.
See it on page 3Operational efficiency will be bolstered by a centralized Creative Network and a Core Services division, with increased investment in generative AI technology.
See it on page 5Ubisoft has announced a comprehensive organizational and portfolio reset aimed at reclaiming creative leadership and restoring sustainable growth. This strategic pivot responds to an increasingly selective AAA market, rising development costs, and a competitive landscape for shooter and live-service games. The transformation is built upon three primary pillars: a new decentralized operating model, a refocused product portfolio, and an accelerated cost-reduction program designed to rightsize the company for long-term efficiency.
The centerpiece of this reset is the establishment of five specialized Creative Houses, which will operate as integrated business units with full financial and creative ownership over specific genres. These units include Vantage Studios, focused on flagship franchises like Assassin’s Creed and Far Cry; a house for competitive shooters; one for live-service experiences; a division for immersive fantasy and narrative universes; and a final house dedicated to casual and family-friendly titles. This structure is supported by a centralized Creative Network for production capacity and a Core Services division providing shared technology, including increased investment in generative AI. To bolster collaboration, the company is also mandating a return to five days per week on-site for all teams.
The portfolio reset involves the discontinuation of six games, including the Prince of Persia: The Sands of Time remake, and the delay of seven other titles to ensure they meet higher quality benchmarks. These changes have led to a significant revision of financial outlooks for fiscal years 2026 and 2027. For FY2026, Ubisoft expects net bookings of approximately €1.5 billion and a non-IFRS EBIT loss of around €1 billion, largely due to a €650 million one-off accelerated depreciation. To mitigate these impacts, the company is accelerating its cost-saving initiatives, targeting a total fixed cost reduction of €500 million since FY2023, with the goal of reaching a run-rate of €1.25 billion in total fixed costs by March 2028.
