French company Ubisoft this week canceled several games and closed several studios as part of a major restructuring, and its executives said they would double down on generative AI in game development. That dealt a major blow to Ubisoft shares.
French company Ubisoft this week canceled several games and closed several studios as part of a major restructuring, and its executives said they would double down on generative AI in game development. That dealt a major blow to Ubisoft shares.
The French video game developer’s shares fell nearly 40% on the news, Mashable reports. The company’s value has fallen 90% over the past five years.
Ubisoft has been struggling financially for a long time, with flagship franchises like Assassin’s Creed requiring huge budgets and long development cycles, and other games not always generating the sales volume Ubisoft had hoped for.
This forced the company to close studios in cities such as Halifax and Stockholm, as well as cancel development on the Prince of Persia remake and postpone the Assassin’s Creed: Black Flag remake.
Ubisoft said it expects an operating loss of around €1 billion in the fiscal year ending in 2026, after a €650 million write-down due to restructuring. The company is considering selling assets.
«Today’s market conditions require the group to make fundamental changes to its organization and operations,» Yves Guillemot, founder and CEO of Ubisoft, said in a statement.
After the restructuring, Ubisoft will focus on open-world games and live-service, transforming its core franchises into annual billion-dollar brands.
