A major game publisher is shutting studios and killing six titles - here's why

"To chart that course, Ubisoft said it will selectively close the game studios it operates in Halifax and Stockholm, while restructuring other studios based in Abu Dhabi, Malmö, and Helsinki. The company will consolidate its studios into five genre-specific "creative houses" that combine game production and publishing. The company described the desperate measures as a "major reset" to set itself on a path to sustainable growth."

"For the year, Ubisoft now expects net bookings of roughly $1.5 billion euros, down by $330 million from its previous guidance. "It is a radical move, relying on a more decentralized creative organization with faster decision making and best-in-class cross functional core services supporting and serving each Creative House," Ubisoft Founder and CEO Yves Guillemo wrote in press release, emphasizing that the changes would provide deep cost reduction designed to "rightsize" the 17,000-person company."

Ubisoft will dramatically reorganize by canceling six in-development games, including the Prince of Persia remake, and abandoning four unannounced projects. The publisher plans selective studio closures in Halifax and Stockholm and restructurings in Abu Dhabi, Malmö, and Helsinki, consolidating operations into five genre-specific creative houses that combine production and publishing. The company now expects roughly €1.5 billion in net bookings, a €330 million downgrade, and saw shares fall over 30%. Leadership framed the move as a decentralized, faster decision-making reset to reduce costs and "rightsize" the 17,000-person workforce.

Read at Fast Company