PARIS: Shares in French video game publisher Ubisoft tumbled as much as 35% on January 22, 2026, hitting their lowest level in 14 years after the company unveiled a sweeping reorganization plan.
The stock fell sharply in early trading to around 4.5 euros, slashing the company’s market value to approximately 616 million euros ($720 million).
This marked Ubisoft’s biggest one-day drop since its 1996 listing and reflected deep investor concerns over the firm’s ongoing struggles.
Radical Overhaul Announced
Ubisoft revealed it would abandon development of six games, including a long-awaited remake of “Prince of Persia,” and delay seven others to meet higher quality standards. The publisher is splitting operations into five genre-focused “creative divisions” to sharpen focus, improve agility, and rein in costs after years of delays and weak releases.
Several studios face closure or restructuring, including confirmed shutdowns in Halifax, Canada, and Stockholm.
Financial Impact and Guidance Withdrawal
The moves, part of a broader portfolio reset, will significantly affect short-term finances, particularly in fiscal years 2026 and 2027. Ubisoft trimmed its net bookings forecast for 2026 and withdrew full-year guidance for 2026/27.
Analysts noted the plan includes a “final” round of cost-cutting targeting €200 million in savings.
Background of Challenges
Ubisoft has endured multiple difficult years with disappointing game performance, eroding confidence. In late 2025, the company postponed half-year results, faced a trading suspension, and breached debt covenants—prompting use of a prior 1-billion-euro Tencent investment for loan repayment.
CEO Yves Guillemot described the changes as a “radical move” to reclaim creative leadership and return to sustainable growth.