Shares plummet as Ubisoft cancels long-awaited video game remake

The Paris-based firm plans to restructure into five distinct creative divisions

Shares in Ubisoft plummeted on Thursday following the French video game publisher's announcement of a significant reorganisation and the cancellation of six upcoming titles.

The creator of the popular Assassin's Creed series saw its stock fall by 33 per cent in delayed trading, leading losses on Paris' SBF 120 index. This puts the company on track for its largest single-day decline since its 1996 listing, should the losses persist.

The Paris-based firm plans to restructure into five distinct creative divisions, grouping its various titles by game genre. Among the six games scrapped was a highly-anticipated Prince of Persia remake.

Concurrently, Ubisoft narrowed its net bookings forecast for 2026 and withdrew its previous guidance for the 2026/27 fiscal year.

"The prospect of a return to positive cash generation appears distant, and the financial structure is likely to be weakened again in the near term," Corentin Marty, analyst at brokerage firm TP ICAP Midcap, said in a note to clients.

Shares were trading at €4.6 in early Thursday trading, giving Ubisoft a market value of €616 million ($720 million).

The creator of the popular Assassin's Creed series saw its stock fall by 33 per cent in delayed trading, leading losses on Paris' SBF 120 index (Associated Press)

Its shares nearly halved in value last year, falling below €1 billion of market capitalisation, compared to their peak of €11 billion in 2018, according to LSEG data.

Changes at Ubisoft explained

Under the new structure, Ubisoft's five "Creative Houses" will oversee their portfolios from brand development to sales, and be responsible for their own budget. Each division will have separate management teams.

Their pay will be tied to metrics like player engagement and value creation, the company said.

The first unit, Vantage Studios, established in November with a €1.16 billion investment from China's Tencent will manage Ubisoft's biggest franchises, including Assassin's Creed.

The four other units will respectively focus on multiplayer shooters, live services, narrative-driven games, and casual and family games.

Vantage Studios, established in November, will manage Ubisoft's biggest franchises, including Assassin's Creed (Ubisoft)

For 2026, Ubisoft now forecasts net bookings of around €1.5 billion and an operating loss of roughly €1 billion.

This includes a €650 million hit from game cancellations and delays. It previously expected net bookings of around €1.9 billion and to break even at operating level.

Ubisoft anticipates net debt of €150-250 million by the end of 2026, with cash reserves of €1.25-1.35 billion.

Free cash flow is projected to be negative €400-500 million.

The company's cost reduction program of €100 million is expected to be fully achieved by March, one year after its initial target.

It is also setting a new cost savings target of an additional €200 million over the next two years and will continue to consider potential asset sales.

The company withdrew its prior fiscal 2026-27 guidance and plans to outline medium-term projections in May 2026.