Ubisoft is experiencing the worst stock market session in its history: it plummets 39% after cutting forecasts and canceling six games

Ubisoft shares have plummeted this Thursday on the stock market. The French company that develops and distributes video games such as Assassin’s Creed has recorded the worst session in the markets in its history, according to Bloomberg records dating back to 1995. Ubisoft has closed with a fall of 39.83% on the Parisian stock market. The decline comes after the multinational announced a “restart” of its business, which includes a profound reorganization, with the closure of studios, and a new operating model, as well as the cancellation of six games and the downward revision of its forecasts for the year. The French video game manufacturer expects to record a loss before interest and taxes of €1 billion in the 2025-2026 fiscal year as a result of the restructuring, which includes extraordinary charges. of around 650 million euros, the company reported in a statement late Wednesday. The measures are part of a broader plan to optimize operations, which includes the closure of studios in Stockholm and Halifax, Canada. Ubisoft said that by March it will have cut at least €100 million in fixed costs compared to the last fiscal year, a year ahead of schedule, and has set a target of cutting an additional €200 million over the next two years. Ubisoft, which is one of the world’s largest game developers, has suffered a series of setbacks in recent years. The company defaulted on a loan payment last year, causing a one-week delay in reporting its first-half results. It has also had creative difficulties, with high-profile games like Avatar: Frontiers of Pandora and Star Wars Outlaws failing in an increasingly competitive consumer market. Like other video game developers, Ubisoft was hit by a post-pandemic production crisis, causing delays in the release of its flagship titles. “We are announcing a major realignment designed to create the necessary conditions for a return to long-term sustainable growth,” said Ubisoft founder and CEO Yves Guillemot. According to the manager, the proposed measures – including the abandonment of projects in development and the closure of studies – “are necessary to build a more focused, efficient and sustainable organization in the long term.” “These measures mark a decisive turning point for Ubisoft,” Guillemot added, warning that the reorientation of the portfolio will have a significant impact on the company’s financial trajectory in the short term, especially in fiscal years 2026 and 2027, although it will allow the company to renew itself with a sustainable growth and strong cash generation. Ubisoft also stated that it expects a gross margin reduction of €330 million compared to previous forecasts. Six games, including a remake of Prince of Persia: The Sands of Time, have been canceled and seven other unnamed games have been delayed. Delaying seven games and canceling six “is a big mistake and a sign that the internal operating model is broken and that management doesn’t understand the development cycle,” Cantor Fitzgerald analyst Edward James told Bloomberg News. Ubisoft’s new structure that will take effect in April will be made up of five “creative houses,” each of which will manage a game genre with faster and more decentralized decision making, the company announced. The units will be supported by a network of studios that will provide development resources and share core services. On the other hand, Ubisoft will accelerate its cost reduction initiatives, with the aim of improving structural efficiency, regaining organizational agility and aligning its cost base with its strategic and creative priorities, while continuing to consider possible asset divestitures.