Ubisoft's Prince of Persia Remake Canceled Amid Company Reorganization and Layoffs
The French video game publisher Ubisoft has announced a major reorganization, dividing its operations into five "Creative Houses" focused on specific genres. This move comes after weeks of speculation about studio closures and layoffs. As a result, six games in development, including the highly anticipated "Prince of Persia: The Sands of Time" remake, have been canceled.
Ubisoft's new model aims to combine game development and marketing with a gamer-centric approach. Each Creative House will be led by dedicated, incentivized teams with expertise in their respective genres, taking full financial responsibility for their brands and content strategy. This includes scaling established franchises into annual billion-dollar brands like Assassin's Creed and Far Cry.
During a media call, Ubisoft leadership revealed that the company is restructuring with a return to in-office work, including an annual allowance for working from home. They did not confirm the exact number of layoffs but noted that additional details would be announced with the company's quarterly earnings on February 12. Ubisoft's early results for the latest quarter show €330 million in sales, primarily driven by partnerships and a robust back catalog.
The company is discontinuing four unannounced games and one mobile title that don't meet the new quality standards and portfolio prioritization criteria. However, they are allocating extra development time to seven unnamed games to ensure enhanced quality and maximize long-term value creation. Ubisoft also mentions that four new IPs are in development, including the game "March of Giants," with the allocation of these games to Creative Houses to be announced later.
Ubisoft's Founder and CEO, Yves Guillemot, emphasized the need for a major reset to create sustainable growth conditions. He stated that the AAA industry has become more selective and competitive, with rising development costs and challenges in creating brands. However, exceptional AAA games have more financial potential than ever. Guillemot's statement highlights the company's determination to confront challenges and reshape itself for the long term, marking a decisive turning point for Ubisoft.
