{"id":47050,"date":"2026-01-22T11:34:58","date_gmt":"2026-01-22T11:34:58","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/22\/ubisoft-shares-plunge-33-after-restructuring-and-game-cancellations\/"},"modified":"2026-01-22T11:34:58","modified_gmt":"2026-01-22T11:34:58","slug":"ubisoft-shares-plunge-33-after-restructuring-and-game-cancellations","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/22\/ubisoft-shares-plunge-33-after-restructuring-and-game-cancellations\/","title":{"rendered":"Ubisoft shares plunge 33% after restructuring and game cancellations"},"content":{"rendered":"
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Ubisoft Entertainment shares suffered their worst day on record on Thursday after the French video game publisher unveiled a sweeping reorganisation, studio closures, and the cancellation of six games, deepening concerns over its financial trajectory.<\/p>\n

Shares of the \u201cAssassin\u2019s Creed\u201d maker fell as much as 33% in delayed trading, leading losses on Paris\u2019 SBF 120 index and marking the steepest one-day decline since the company\u2019s 1996 initial public offering. <\/p>\n

The stock was trading around \u20ac4.6, giving Ubisoft a market capitalisation of roughly \u20ac616 million ($720 million), according to market data.<\/p>\n

The selloff follows years of declining share performance after the Covid-19 pandemic, as Ubisoft grappled with delayed releases, rising costs, and weakening bookings.<\/p>\n

Major restructuring and studio closures<\/h2>\n

On Wednesday evening, Ubisoft announced a major organisational overhaul, including plans to split its operations into five creative divisions organised by game genre. <\/p>\n

As part of the restructuring, the company said it would shut studios in Halifax, Canada, and Stockholm, while carrying out restructurings at studios in Abu Dhabi, Helsinki, and Malm\u00f6.<\/p>\n

Ubisoft also confirmed it would cancel development on six games, including a highly anticipated remake of Prince of Persia<\/em>, and delay an unannounced title by a year.<\/p>\n

\u201cToday\u2019s market environment requires that the Group step-changes how it is organized and operates,\u201d Yves Guillemot, Founder and CEO of Ubisoft, announced in the statement.<\/p>\n

\u201cThe portfolio refocus will have a significant impact on the Group\u2019s short term financial trajectory, particularly in fiscal years 2026 and 2027, but this reset will strengthen the Group and enable it to renew with sustainable growth and robust cash generation.\u201d<\/p>\n

The company said the restructuring triggered a \u20ac650 million write-down and that it now expects an operating loss of around \u20ac1 billion ($1.17 billion) for the financial year ending 2026.<\/p>\n

Forecast cuts and cost-saving plans<\/h2>\n

Alongside the restructuring, Ubisoft sharply lowered its outlook. <\/p>\n

The company now expects net bookings of around \u20ac1.5 billion ($1.75 billion) for the financial year ending 2026, down \u20ac330 million from previously issued guidance. It also withdrew its earlier guidance for fiscal years 2026 and 2027.<\/p>\n

Ubisoft said it would consider selling assets as part of efforts to stabilise its finances.<\/p>\n

Cost-cutting measures are expected to generate \u20ac500 million ($580 million) in savings, with fixed costs projected to fall to \u20ac1.25 billion ($1.46 billion) on a run-rate basis by March 2028, compared with \u20ac1.75 billion ($2.35 billion) in the financial year ending 2023. <\/p>\n

The company separately said it would trim \u20ac200 million of costs over the next two years.<\/p>\n

The company also warned it would lose about \u20ac1 billion on an adjusted basis before interest and tax this fiscal year, compared with a previous expectation of roughly breakeven.<\/p>\n

Market reaction and investor impact<\/h2>\n

Analysts reacted sharply to the announcement. \u201cThis is a dire profit warning in a long string of unmitigated disasters,\u201d said analysts at Bernstein.<\/p>\n

The plunge marked a significant win for short sellers. <\/p>\n

Citadel held a short position equivalent to 0.89% of Ubisoft shares as of Tuesday, implying profits of roughly \u20ac240 million from Thursday\u2019s move, according to French securities filings. <\/p>\n

London-based Marchant MC also disclosed a short position worth 0.56% of the company.<\/p>\n

Ubisoft\u2019s shares have now lost nearly half their value over the past year and are far below their 2018 peak market capitalisation of around \u20ac11 billion, underscoring the scale of challenges facing the publisher as it attempts to reset its business.<\/p>\n

The post Ubisoft shares plunge 33% after restructuring and game cancellations<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Ubisoft Entertainment shares suffered their worst day on record on Thursday after the French video game publisher unveiled a sweeping reorganisation, studio closures, and the cancellation of six games, deepening concerns over its financial trajectory. Shares of the \u201cAssassin\u2019s Creed\u201d maker fell as much as 33% in delayed trading, leading losses on Paris\u2019 SBF 120 <\/p>\n","protected":false},"author":1,"featured_media":47051,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-47050","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/47050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=47050"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/47050\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/47051"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=47050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=47050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=47050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}