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(Sharecast News) - Ubisoft Entertainment lost a third of its value on Thursday, after the French games developer unveiled a major restructuring, cancelled titles and slashed guidance.
The Paris-listed stock had plunged 33% by 1030 GMT, with trading briefly suspended at one point.
The maker of Assassin's Creed, which intends to split into five creative divisions, said it would halt development for six games, including a long-anticipated Prince of Persia The Sands of Time remake. Other games would take longer to develop, it added, with several studios due to be closed.
It is now forecasting net bookings of 1.5bn and a net loss of around 1bn, including a 650m hit from the game cancellations and delays, for the 2026 full year. Previous guidance had been for net bookings of 1.9bn and to break even at the operating level.
Founder and chief executive Yves Guillemot insisted these "difficult decisions" were necessary to successfully "reset" the group.
"Taken together, these measures mark a decisive turning point for Ubisoft and reflect our determination to confront challenges head-on to reshape the group for the long term," he said. "The portfolio refocus will have a significant impact on the group's 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. Ubisoft is entering a new phase, one designed to reclaim creative leadership and build value for players and stakeholders over the long term."
Ubisoft has endured a difficult period in recent years, hit by repeated launch delays and falling revenues.
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