Ubisoft Cuts Six Games, Shuts Down Studios, Including Prince of Persia
In a significant shift for the gaming industry, Ubisoft has announced the cancellation of six video games, including the highly anticipated remake of *Prince of Persia: The Sands of Time*. This decision is part of what the company describes as a “major reset” to their business operations.
Details of the Game Cancellations
Ubisoft’s recent move involves not only the cancellation of the *Prince of Persia* remake but also four unannounced titles. Among these canceled games are three based on new intellectual properties (IPs) and a mobile game.
Studio Closures and Restructuring
- Ubisoft has closed two studios in Stockholm, Sweden, and Halifax, Canada.
- The Halifax studio had recently formed a union, and its closure was announced in January.
- Additionally, three other studios will undergo restructuring.
Yves Guillemot, CEO of Ubisoft, stated that these actions are necessary to create a more efficient and focused organization. He emphasized the challenges in the changing gaming landscape while aiming for sustainable growth.
Impact on the Company
Following the announcement, Ubisoft’s shares dropped by 33%. This drastic decline reflects investor concerns about the company’s future direction amidst a highly competitive gaming market. Industry analysts suggest that the decision aligns with a broader trend of risk mitigation, as studios are increasingly focused on established franchises rather than investing in new IPs.
The Future of Game Development
In light of these changes, Ubisoft plans to concentrate on developing open-world adventure games and live-service titles that generate ongoing revenue through player subscriptions. Guillemot noted that while the triple-A gaming sector has become more competitive and costly, successful blockbuster games offer unprecedented financial potential.
Ubisoft believes that with its restructuring and new focus, it can reshape the company for long-term success. The creation of Vantage Studios, backed by a substantial investment from Tencent, aims to develop major franchises like *Assassin’s Creed*, *Far Cry*, and *Rainbow Six* into annual billion-dollar brands.
