Ubisoft cancels 6 games, closes 2 studios in major restructuring

Ubisoft just shocked the gaming world with a devastating restructuring. The company is canceling 6 games including the long-awaited Prince of Persia: Sands of Time remake, closing 2 studios, and bracing for a €1 billion operating loss. This is the biggest reset in company history.

The Prince of Persia Remake is Dead

Ubisoft officially cancelled its notoriously delayed Prince of Persia: Sands of Time remake after years of development limbo. The title was rebooted once already but failed to meet “enhanced quality expectations,” according to the company’s CFO Frederick Duguet. This ranks among the most painful cancelations, as fans waited over a decade for the project to materialize. Three other unannounced new IPs and one mobile game were also scrapped as part of the same review.

The move signals Ubisoft’s brutal prioritization strategy. Going forward, the publisher will focus only on blockbuster open-world adventures and games-as-a-service experiences that can compete with industry heavyweights. Everything else gets axed.

Assassin’s Creed Black Flag and 6 Other Games Get Delayed

Beyond the six cancellations, 7 major titles have been delayed to next year. While Ubisoft won’t name them publicly, insiders confirm the list includes Assassin’s Creed: Black Flag Resynced, the anticipated pirate-themed remake. Originally set for release before March 31, 2026, this blockbuster now launches before March 31, 2027. CEO Yves Guillemot claimed the delays ensure games meet the company’s “enhanced quality standards” and maximize financial returns in a brutally selective market.

Impact Category	Details
Games Cancelled	6 projects, 1 mobile game, 3 new IPs
Games Delayed	7 titles, including AC: Black Flag remake
Studios Closed	Stockholm, Halifax completely shut down
Cost Savings Target	€200 million additional cuts over 2 years

Two Studios Shut Down in Brutal Restructuring

Ubisoft Stockholm and Ubisoft Halifax are closing entirely as part of this “major reset.” Stockholm previously collaborated on Avatar: Frontiers of Pandora, while Halifax developed Assassin’s Creed Rebellion before its recent shutdown announcement. The Halifax closure came just weeks after employees unionized, a timing that sparked controversy. Additional “restructurings” will hit Abu Dhabi, RedLynx, and Massive Entertainment (makers of The Division).

CFO Frederick Duguet warned: “There are some people who will be refocused on other big projects, and some may leave the company.” No specific layoff count was disclosed, but industry observers expect significant workforce reductions across all affected studios.

“We are transforming Ubisoft’s operating model to produce exceptional quality games on the two core pillars of our strategy, Open World Adventures and GaaS-native experiences. This is a radical move, relying on a more decentralized creative organization with faster decision making.”

Yves Guillemot, CEO of Ubisoft

New “Creative Houses” Structure Takes Control

Ubisoft is reorganizing into five independent “Creative Houses,” each responsible for specific game genres and franchises. Vantage Studios (part-owned by Tencent) controls Assassin’s Creed, Far Cry, and Rainbow Six. Creative House 2 focuses on shooters, handling The Division, Ghost Recon, and Splinter Cell. CH3 manages live services including For Honor, Skull and Bones, and The Crew. CH4 owns narrative franchises like Prince of Persia, Beyond Good and Evil, and Anno. Finally, CH5 handles family games including Just Dance and Uno.

Each house has “end-to-end responsibility” for its portfolio, from development through publishing and financial accountability. Leadership positions are being filled with external and internal candidates in the coming weeks. The new structure launches in early April 2026.

Will This Gamble Save Ubisoft’s Future?

Ubisoft’s situation remains dire despite this aggressive reset. The company slashed its full-year guidance by €330 million, now expecting just €1.5 billion in net bookings instead of the previously projected €1.83 billion. The restructuring will cost an additional €650 million in non-cash R&D depreciation, tallying roughly €1 billion in total operating losses for fiscal 2026. By 2028, these cuts will have slashed fixed costs by €500 million compared to 2023 levels.

CEO Guillemot acknowledged the brutal market: “Competition is here to stay. When you come in number one or number two with great content quality, you can have very strong reward.” The bet is that ruthless focus on quality blockbusters will finally restore Ubisoft to profitability. If this reset fails, the company’s survival itself could be at stake.

Sources

• IGN – Breaking news on game cancellations and studio closures with official statements
• Video Games Chronicle – Detailed restructuring details and Creative House organization
• GamesIndustry.biz – CFO and executive interviews on financial impact and strategy