Ubisoft Restructuring: What the Financial Outlook & Game Changes Mean

Ubisoft unveils sweeping restructuring, updates targets Ubisoft's Restructuring and Financial Forecast Jan 21 - French video game publisher Ubisoft will undergo a reorganization, splitting the company into five creative divisions, it said on Wednesday while also revising its financial outlook. Internal Reorganization The revamp, set to commence in early April, divides Ubisoft into five units focusing on specific game genres. The company also announced the cancellation of six games, including a "Prince of Persia" remake and three unannounced titles, alongside delays to seven other projects. Updated Financial Targets INTERNAL REORGANISATION Cost Reduction Initiatives Under the new structure, Ubisoft's five "Creative Houses" will oversee their portfolios from brand development to sales, and be responsible for their own budget. Each division will have separate management teams. Their pay will be tied to metrics like player engagement and value creation, the company said. The first unit, Vantage Studios, established in November with a 1.16 billion euro investment from China's Tencent , will manage Ubisoft's biggest franchises, including "Assassin's Creed". The four other units will respectively focus on multiplayer shooters, live services, narrative-driven games, and casual and family games. FINANCIAL TARGETS UPDATED For 2026, Ubisoft now forecasts net bookings of around 1.5 billion euros and an operating loss of roughly 1 billion euros. This includes a 650 million euros hit from game cancellations and delays. It previously expected net bookings of around 1.9 billion euros and to break even at operating level. Ubisoft anticipates net debt of 150-250 million euros by the end of 2026, with cash reserves of 1.25-1.35 billion euros. Free cash flow is projected to be negative 400-500 million euros. The company's cost reduction program of 100 million euros is expected to be fully achieved by March, one year after its initial target. It is also setting a new cost savings target of an additional 200 million euros over the next two years and will continue to consider potential asset sales. The company withdrew its prior fiscal 2026-27 guidance and plans to outline medium-term projections in May 2026. (Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)