Highlights
- Ubisoft cancelled games, confirming studio closures, project delays, and restructuring.
- The publisher is reorganizing into five independent Creative Houses, each focusing on a specific genre of games.
- These reflect broader financial strain across the AAA games industry.
Ubisoft cancelled games and closed down Studios in an internal restructuring that is seeing six games cancelled, and seven titles delayed, as the publisher aims to cut costs and reset its long-term production strategy. The French publisher disclosed this in a media briefing on Jan 21, 2026.
Under the new guidance, Ubisoft would reorganize itself into five genre-focused “Creative Houses,” one of them being Vantage Studios, established with Tencent in 2025. The new operating model introduces a three-year roadmap and aims to significantly revise the financials of Fiscal Year 2026 (FY26).
Ubisoft has already closed two studios, Ubisoft Halifax (Canada) and Ubisoft Stockholm (Sweden), as part of the reset. It also began restructuring in its RedLynx, Massive, and Abu Dhabi studios, resulting in roughly 144 job losses combined.
Alongside the closures and a new model, Ubisoft has canceled six projects that did not meet the company’s “enhanced quality” expectations, according to the founder and CEO of Ubisoft, Yves Guillemot. VGC reported the cancelled games include a Prince of Persia: Sands of Time remake, and four unannounced games. The publisher is also delaying seven additional games to 2027, allowing time for extended polish and quality improvements.
Duguet emphasized the fiscal impetus behind the reset, highlighting that the company said it expects to achieve a reduction in fixed costs, including an additional €200 million Euro ($233.7M) from new initiatives over the next two years.
Creative Houses and Portfolio Revisions
In its statement, Ubisoft said the closures reflect a need to prioritize projects with the strongest potential and align resources accordingly, as development costs continue to rise across the AAA games sector. The reset introduces a decentralized operating model structured around five independent Creative Houses (CH), each accountable for the development of a distinct genre category.
The first of these houses is Vantage Studios, responsible for Ubisoft’s marquee franchises, Assassin’s Creed, Far Cry, and Rainbow Six. The rest of the studios are not named as of now. However, Ubisoft has outlined the genre-divisions, with CH2 overseeing competitive and cooperative shooters, like The Division, Ghost Recon, and Splinter Cell.
CH3 is in charge of live-service titles such as The Crew, Riders Republic, and Skull & Bones, while CH4 will manage fantasy and narrative titles, such as Anno, Might & Magic, and Prince of Persia.
Yves Guillemot, founder and CEO, highlighted that the industry’s selectivity and competitive pressures have increased while development costs continue to rise, making the revamped model necessary to “produce exceptional quality games on the two core pillars of our strategy, Open World Adventures and GaaS-native experiences,” in his statement.
According to Ubisoft, creative houses will have both standalone and collaborative models, with some having their own development studio and some being part of the Creative Network team and collaborating with several houses. Employees will be required to report back to work five days a week as part of the adjustments, with some work-from-home days permitted.
Ubisoft Cancelled Games Hint Towards Financial Pressure
Ubisoft’s announcement comes against a backdrop of slowed net bookings and increased cost pressures across the AAA games sector. The financial guidance for Q3 2025 showed net bookings at €301.8M (~$352.75M ), and a combined €784M (~$916.34M) in the last nine months ending 2024-25, which is a 33.8% decrease on net bookings year-on-year from the previous year.
Guillemot emphasized that the reset will impact short-term financials but is designed to restore structural efficiency and better position the business for sustainable growth, stating, “the portfolio refocus will have a significant impact on the Group’s short term financial trajectory, particularly in fiscal years 2026 and 2027."
Ubisoft’s reset represents a significant corporate pivot, combining studio closures, project cancellations, and a new decentralized model in response to evolving market dynamics and internal performance goals. The industry has seen similar restructurings in recent years as major publishers adjust to rising production costs, changing consumer behavior, and increased competition from free-to-play and mobile gaming markets.
