Ubisoft revamps organization to erase gloom
Ubisoft Announces Corporate Restructuring and New Assassin’s Creed Release
Business Reorganization
Ubisoft has reorganized its operations into a number of independent units to create a more agile and focused corporate structure. The CEO, Yves Guillemot, emphasized that the reorganization is designed to secure long‑term stability while preserving the company’s creative vision.
Financial Performance – Q1 2025‑26
- Sales: €311 million ($364 million) – a 3.9 % decline versus the same period last year.
- Net Bookings: €310 million – a 2.9 % dip, calculated by excluding certain deferred revenues.
- Key issue: Technical problems with the shooter title Rainbow Six Siege drove sales erosion.
Assassin’s Creed Shadows – Market Impact
Despite mixed quarterly results, Ubisoft hailed the release of Assassin’s Creed Shadows. The latest installment has attracted more than five million unique players since launch, meeting internal expectations.
Q2 Outlook and Fiscal Year Goals
- Net Bookings Forecast: ~€450 million, supported by new partnerships and revenue from a television series.
- Full‑Year Objectives: Maintain stable year‑on‑year net bookings and achieve an approximately break‑even operating profit.
Ubisoft Faces 159‑Million‑Euro Loss in 2024‑25
Ubisoft, the maker of the popular Assassin’s Creed series, reported a net loss of 159 million euros for the 2024‑25 fiscal year. The company is cutting costs, closing several studios outside France and cutting over 2,000 jobs.
Global Headwinds for the Game Industry
- Declining sales of new releases.
- Rising competition from indie studios.
- Slumping share price since January.
Strategic Split into “Creative Houses”
Guillemot, a founding family member, said Ubisoft has made meaningful progress on separating its activities into several autonomous “creative houses,” each handling a different game slate. He promised further details by October.
New Units are Autonomous
The director’s email letters to staff state that each unit will be autonomous and completely responsible for its business objectives.
Chinese Collaboration with Tencent
To force change after disappointing releases, Ubisoft launched a first subsidiary in a €1‑billion deal with Tencent, a heavyweight Chinese investor. The 3,000‑strong unit will control the biggest franchises: Assassin’s Creed, Rainbow Six, and Far Cry.
Leadership of the Chinese Joint Venture
- Charlie Guillemot – Ubisoft CEO’s son, heading the unit.
- Christophe Derennes – veteran chief of the Montreal studio.
- Both will receive advice and expertise from Tencent, one of China’s largest gaming and internet firms.
Upcoming Releases and Delays
Ubisoft plans a remake of Prince of Persia: The Sands of Time for March, a fan favorite from two decades ago. The Anno series will add a new episode set in ancient Rome. Mobile versions of Rainbow Six and The Division are also in development.
In May, the company warned that several unannounced major titles were being delayed. This has contributed to a 28‑percent slump in Ubisoft’s stock price since January.
Reputational Challenges
Ubisoft’s image has suffered from a high‑profile lawsuit in which three former executives were sentenced this month for enabling a culture of sexual and psychological harassment.
Looking Ahead
Ubisoft aims to boost its portfolio by restructuring its creative houses, cutting costs, and revisiting its flagship franchises and mobile offerings while addressing the legal and reputational issues that have tarnished its brand.
