Ubisoft has announced a major restructuring through a press release that has landed like a bucket of cold water on both the community and the group’s own shareholders. This reorganization has involved the closure of several studios as well as a wave of layoffs, in addition to the cancellation of multiple projects and the delay of many others.
The reaction of the company’s shareholders was immediate, and the following day the company’s shares recorded the worst stock market drop in its entire history, falling by 39.8%. Going from a share value of 6.68 euros to barely 3.99 overnight. While a stock market drop was predictable considering that Ubisoft itself acknowledged that they expect operating losses of around 1 billion euros, no one expected the impact to be so severe. But considering that shareholders are mere financial parasites who speculate with the sole intention of making a profit, it is not surprising either.
Cancellations and delays
Among the 6 releases cancelled by the French studio is the long-awaited remake of Prince of Persia: The Sand of Times, which is probably the greatest shattered dream of Ubisoft’s audience. Five other titles met the same fate, four of them had not yet been announced and three were completely new IPs. In addition, the delay of another 7 games was announced in order to “ensure they meet the expected quality levels”.
Restructuring and layoffs
The closure of several studios in order to carry out this restructuring comes alongside a new “more decentralized” model (according to Ubisoft) based on Creative Houses, which are networks of studios that work together, each of them focused on certain genres or experiences.
Organization of the new Creative Houses
Creative House 1 (Vantage Studios)
Focused on scaling and extending Ubisoft’s largest and most established franchises to turn them into annual multi-billion-dollar 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 catalog of select and sharpened Live experiences.
Brands including For Honor, The Crew, Riders Republic, Brawlhalla, Skull & Bones.
Creative House 4
Dedicated to immersive fantasy worlds and narrative universes.
Brands including Anno, Might & Magic, Rayman, Prince of Persia, Beyond Good & Evil.
Creative House 5
Focused on regaining its position in casual and family games.
Brands including Just Dance, Idle Miner Tycoon, Ketchapp, Hungry Shark, Invincible: Guarding the Globe, Uno, Hasbro
This change in organization has led to the closure of multiple studios and a huge number of layoffs. Although an official figure has not yet been disclosed, considering the size of the studios that were shut down, it is expected that hundreds of people will lose their sources of employment. All of this, as always, under the excuse of “reducing costs and being more competitive”, typical stock phrases of millionaires at the expense of others’ sacrifice.
