Ubisoft Faces Major Plummet After Drastic Reorganization

Ubisoft's shares plummeted 33% following the announcement of organizational changes and the cancellation of six games, including a 'Prince of Persia' remake. The company plans to reorganize into five creative divisions. This move impacts its financial outlook with declining market value and a weakened financial structure.

Ubisoft's shares nosedived on Thursday by 33% after the company unveiled plans for a significant reorganization and announced the cancellation of six games. This sharp decline marked the worst trading day for the French video game publisher since its 1996 market debut.

The restructuring involves dividing into five creative divisions, aiming to categorize their popular titles according to genre. Among the canceled projects is a much-anticipated 'Prince of Persia' remake. Ubisoft also revised its forecast for 2026 net bookings and rescinded its fiscal 2026/27 guidance.

Corentin Marty, an analyst at TP ICAP Midcap, cautioned that the company's path to positive cash flow remains uncertain, anticipating further weakening of its financial structure. Ubisoft's market value has dropped dramatically, reflecting a broader decline in its financial standing.

(With inputs from agencies.)