Ubisoft Restructures Its Organization and Lowers 2026 Forecasts
The French video game publisher announced on Wednesday a major strategic overhaul of its operational model, now organized around five specialized units. This transformation is accompanied by a significant revision of its financial targets for the current fiscal year.
Strategic Reorganization into Five Creative Houses
According to the press release, Ubisoft has decided to reorganize its activities around five Creative Houses, integrated business units that combine development and distribution. Each will specialize in a specific game genre and will have complete financial autonomy. The first unit (Vantage Studios) will focus on major franchises such as Assassin's Creed, Far Cry, and Rainbow Six. The second will concentrate on competitive shooter games including The Division and Ghost Recon, while the third will manage online experiences like For Honor and The Crew. The fourth will develop narrative universes with Anno, Rayman, and Prince of Persia, and the fifth will target casual and family games, notably Just Dance. These new structures will become operational in early April, the company indicates. The group also specifies that it will enforce a return to the office five days a week, supplemented by an annual telework quota.
Major Portfolio Refocus and Game Development Adjustments
According to the group, this restructuring is accompanied by a major refocus of the portfolio. Ubisoft indicates that it has halted the development of six games deemed non-compliant with new quality and prioritization criteria. Among them is the remake of Prince of Persia: The Sands of Time, as well as four unannounced titles, including three new brands and one mobile game. Concurrently, seven other games will receive additional development time to ensure enhanced quality standards, as per the press release. This revision includes an unannounced title initially scheduled for fiscal 2026, now postponed to fiscal 2027. The group also notes that it has closed the studios in Halifax and Stockholm, and undertaken restructurings in Abu Dhabi, RedLynx, and Massive.
Revised Financial Forecasts for Fiscal 2025-2026
For the fiscal year 2025-2026, Ubisoft now expects net bookings of approximately 1.5 billion euros, representing a reduction of about 330 million euros in gross margin compared to previous targets. The company anticipates a non-IFRS EBIT of approximately -1 billion euros, including an accelerated depreciation of about 650 million euros related to transformation decisions. Free cash flow is expected to be between -400 million and -500 million euros. Non-IFRS net debt is projected to be between 150 million and 250 million euros at the end of the fiscal year, with cash holdings ranging from 1.25 billion to 1.35 billion euros, down from the previously anticipated 1.5 billion euros. According to the group, the fixed cost reduction program will be fully realized by March 2026, with a target of 100 million euros in savings compared to the fiscal year 2024-2025. A new phase aims for an additional 200 million euros in savings over the next two years, bringing the cumulative fixed cost reduction to about 500 million euros since the fiscal year 2022-2023.
