Paris, Jan 22, 2026, 11:33 CET — Regular session
- Ubisoft shares plunged nearly 33% following the announcement of a major restructuring and the cancellation of six games
- The company lowered its 2026 net bookings forecast and withdrew its guidance for fiscal 2026/27
- Investors are focused on cash burn, plans for asset sales, and a Feb. 12 update for further details
Shares of Ubisoft Entertainment SA (UBIP.PA) plunged 33% following a delayed market open on Thursday. The French video game giant announced a major shake-up and scrapped six titles. Trading hovered near 4.6 euros, putting Ubisoft’s market value at roughly 616 million euros. Analyst Corentin Marty from TP ICAP Midcap warned that “a return to positive cash generation appears distant.” 1
The scale of the shift is crucial as Ubisoft aims to overhaul its pipeline amid rising costs and the growing challenge of producing repeat hits in big-budget games. Investors have relied heavily on the company’s top franchises to steady cash flow, but Thursday’s announcement suggests more upheaval lies ahead.
On Wednesday, Ubisoft trimmed its 2026 net bookings forecast — a key sales metric capturing in-game spending and game sales before accounting adjustments — and pulled its previous outlook for fiscal 2026/27. The company now projects net bookings around 1.5 billion euros in 2026, with an operating loss near 1 billion euros. This marks a significant shift from its earlier goal of about 1.9 billion euros in net bookings and breaking even on operating income. 2
Ubisoft’s updated forecast factors in a 650 million euro loss due to delayed and canceled games. The company now expects free cash flow, the cash remaining after operating expenses and capital investments, to fall between negative 400 million and 500 million euros. Net debt is projected to land between 150 million and 250 million euros by the close of 2026.
Starting in early April, Ubisoft will break into five “Creative Houses,” each focused on a specific game genre. These units will handle their budgets independently, covering everything from development to sales. Management compensation will hinge on player engagement and value creation.
Vantage Studios, the group’s primary unit, will handle its top franchises like “Assassin’s Creed.” It was established in November with a 1.16 billion euro backing from China’s Tencent, the company confirmed. Other units are tasked with multiplayer shooters, live services, and story-driven games.
Ubisoft is not only scrapping its “Prince of Persia” remake but also postponing seven other projects. The publisher aims to boost quality and cut delays, yet the updated schedule signals fewer releases soon and murkier prospects for fiscal 2026/27.
Ubisoft confirmed its cost-cutting plan aiming for 100 million euros will be completed by March, a year later than originally planned. The company also unveiled a fresh target: slashing another 200 million euros in expenses over the next two years, while continuing to explore possible asset sales.
Founder and CEO Yves Guillemot described the move as “a major reset” focused on delivering higher-quality games while cutting costs. The strategy zooms in on open-world titles and games-as-a-service — those designed to keep players engaged and spending through ongoing updates and add-ons. Ubisoft also plans to boost spending on “player-facing” generative AI. 3
That said, risks remain. Further delays or cancellations would only add to the cash burn Ubisoft has already warned about. Selling assets might not be quick and could bring in less than expected given the current market pressure. The revamped structure poses a challenge for management as well: decentralising budgets might quicken decisions but could also create bigger execution gaps among studios.
Ubisoft’s shares plunged by almost half last year, dragging its market value below 1 billion euros—well off the highs seen back in 2018, according to LSEG data cited by Reuters.
Traders are eyeing Feb. 12 for more details from Ubisoft, including any concrete moves on asset sales. The next major milestone comes in early April, with the rollout of the new operating model. Then, in May 2026, Ubisoft intends to reveal updated medium-term forecasts.
