Ubisoft Announces Restructuring, Cuts Six Games and Lowers 2026 Outlook (UBS.F)

French video game publisher Ubisoft is undergoing a major reorganization, splitting into five autonomous "Creative Houses" starting in April 2026, while canceling six titles—including a "Prince of Persia" remake—and delaying seven others. The new structure includes Vantage Studios, backed by a 1.16 billion euro investment from Tencent, which will oversee flagship franchises like "Assassin’s Creed." The other units will focus on multiplayer shooters, live services, narrative-driven, and casual/family games, each managing its own budget and leadership with pay tied to player engagement and value creation. For 2026, Ubisoft now expects net bookings of 1.5 billion euros and an operating loss of about 1 billion euros—worse than prior guidance of 1.9 billion euros and breakeven—due to a 650 million euro impairment from project cuts. Net debt is forecast at 150–250 million euros, with cash reserves of 1.25–1.35 billion euros. Free cash flow is expected to be negative 400–500 million euros. A 100 million euro cost reduction program will be completed by March 2026, with a new target of 200 million euros in savings over the next two years. Asset sales remain under consideration. Previous 2026-27 guidance is withdrawn; new medium-term targets will come in May 2026.