Jan 21 - French video game publisher Ubisoft

will undergo a reorganization, splitting the company into five

creative divisions, it said on Wednesday while also revising its

financial outlook.

The revamp, set to commence in early April, divides Ubisoft

into five ‌units focusing on specific game genres. The company

also announced the cancellation of six games, ​including a

"Prince of Persia" remake and three unannounced titles,

alongside delays to ‍seven other projects.

INTERNAL REORGANISATION

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 ‍euro investment ​from China's Tencent ( TCTZF )

, 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.

FINANCIAL TARGETS UPDATED

For 2026, Ubisoft now forecasts net bookings of around 1.5

billion euros and an operating loss of roughly 1 billion euros.

This includes a 650 million euros hit from game cancellations

and delays. It previously expected net bookings ​of ‍around 1.9

billion euros and to break even at operating level.

Ubisoft anticipates net debt of 150-250 million euros by the

end of ​2026, with cash reserves of 1.25-1.35 billion euros. Free

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

The company's cost reduction program of 100 million euros 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 euros 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.