In case you missed it, Ubisoft are undergoing a massive restructuring. While a media event was held, we didn’t attend, so we figured it would be useful to break down everything that’s changing, including studios, layoffs and their new operating model.
It what’s being described as a massive reset for the publishing giant, Ubisoft have detailed an extensive plan for their business going forward, designed to ‘reclaim its creative leadership, regain agility and drive a sharp rebound’.
Sounds ambitious, and of course, there’s a human cost here. Multiple games have been cancelled, studios have been closed and other elements are being restructured. Here’s the full statement from Yves Guillemot, Founder and CEO of Ubisoft:
“On the one hand, the AAA industry has become persistently more selective and competitive with rising development costs and greater challenges in creating brands. On the other hand, exceptional AAA games, when successful, have more financial potential than ever. In this context, today we are announcing a major reset built to create the conditions for a return to sustainable growth over time.
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. At the center of this transformation are our Creative Houses, integrated business units now combining production and publishing and therefore unifying the gamer relationship. Each one is built around a clear genre and brand focus, with full responsibility and financial ownership, led by dedicated leadership teams. It is a radical move, relying on a more decentralized creative organization with faster decision making and best-in-class cross functional core services supporting and serving each Creative House.
To put the Creative Houses in the best conditions to succeed, we decided to refocus our portfolio with a meaningfully revised 3-year roadmap and accelerate our cost reductions initiatives to rightsize the organization. We will discontinue several projects currently in development and provide additional time to certain games, to ensure enhanced quality and maximize long term value. We will also selectively close several studios and continue restructurings throughout the Group. While these decisions are difficult, they are necessary for us to build a more focused, efficient and sustainable organization over the long term.
Taken together, these measures mark a decisive turning point for Ubisoft and reflect our determination to confront challenges head-on to reshape the Group for the long term. The portfolio refocus will have a significant impact on the Group’s short term financial trajectory, particularly in fiscal years 2026 and 2027, but this reset will strengthen the Group and enable it to renew with sustainable growth and robust cash generation. Ubisoft is entering a new phase – one designed to reclaim creative leadership and build value for players and stakeholders over the long term.”
Ubisoft’s Organisational Restructure
All of this means a new operating model for Ubisoft, and it’s structured around five different ‘creative houses’ that will, according to Ubisoft, be supported by a creative network that provides development resources, core services and a ‘reshaped HQ’. It begins this April, and here’s how it’s being laid out, as per the press release:
Per Ubisoft, this new model leads to some big changes – namely;
- They will combine game development and go-to-market functions with a gamer-centric
approach, and be fully responsible for brand development, content strategy as well as
editorial direction; - They will be shaped by distinct creative ‘genres’ led by dedicated high-profile,
incentivized teams with a unique set of expertise in those genres; - They will have full financial ownership and account for economic performance.
The creative houses will be driven by what Ubisoft refer to as a clear objective and a guiding principal, that being “A gamer centric approach, shaped by a unique set of skills and expertise towards a distinct creative ‘genre’ and a dedicated leadership team incentivized for long-term, cash generating revenue growth.“
Each ‘Creative House’ is going to be organised around a ‘distinct creative genre’, and is fully responsible for owning the ‘gamer relationship’. Here’s how Ubisoft have broken it down:
- Creative House 1 (Vantage Studios)
- focused on scaling and extending Ubisoft’s largest and established franchises to turn them into annual billionaire brands;
- Brands: Assassin’s Creed, Far Cry, Rainbow Six
- Creative House 2
- Dedicated to competitive and cooperative shooter experiences;
- Brands including The Division, Ghost Recon, Splinter Cell
- Creative House 3
- Designed to operate a roster of select, sharp Live experiences;
- Brands including For Honor, The Crew, Riders Republic, Brawlhalla, Skull & Bones
- Creative House 4
- Dedicated to immersive fantasy worlds and narrative-driven universes;
- Brands including Anno, Might & Magic, Rayman, Prince of Persia, Beyond Good & Evil
- Creative House 5
- Focused on reclaiming position in casual and family-friendly games.
- Brands: Just Dance, Idle Miner Tycoon, Ketchapp, Hungry Shark, Invincible: Guarding the Globe, Uno, Hasbro
While we’ve been advised that these changes have resulted in 6 project cancellations that according to Ubisoft, did not meet “the new enhanced quality as well as more selective portfolio prioritization criteria.” This includes the remake for Sands of Time, in addition to four other titles, three of which were new IPs and one being a mobile game. Ubisoft have detailed that there are four new IP’s currently in development, including ‘March of Giants’.
How do you feel about these changes at Ubisoft? Let us know in the XboxEra Forums or make some noise in the lively XboxEra Community Discord Server. If you’re looking to be a bigger part of an amazing community, then either choice is a good one!
