Ubisoft Announces Major Restructuring Including Project Cancellations and Studio Closures

Ubisoft

In a bold move to stay competitive in the evolving video game market, Ubisoft has announced a major restructuring initiative that includes the cancellation of six unannounced projects and delays to several other games. The decision also involves closing studios in Halifax, Canada, and Stockholm as part of cost reduction strategies amid rising production expenses and changing consumer preferences.

The restructuring comes at a challenging time for the AAA video game market where rising development costs and shifting player interests have made large scale action-adventure titles more difficult to sustain financially. Ubisoft’s CEO has highlighted the need to reorganize into five creative divisions based on game genres in order to better manage risks and target new audience segments.

Following the announcement Ubisoft’s share value dropped significantly, reflecting investor concern over future profitability. Analysts believe the new strategy is aimed at streamlining production and focusing on genres with higher player engagement potential such as multiplayer shooters and cooperative experiences.