Have you been waiting to play through Prince of Persia: The Sands of Time with the remake once more? Well, Ubisoft has some extremely bad news. The publisher confirmed on Wednesday that it has canceled six games currently in development, including the long-delayed The Sands of Time remake. This is done as part of a sweeping company-wide reorganization that also includes studio shutdowns and ongoing staff layoffs.
But the impact of Ubisoft's so-called reset goes well beyond a handful of canceled games. The company has already shuttered its Halifax and Stockholm studios, affecting at least 71 employees from the former. While Ubisoft has not confirmed how many additional layoffs are coming, the restructuring affects a global workforce of roughly 17,000 employees. Leadership acknowledged that more details around its 'workforce reductions' will be shared alongside the company's next quarterly earnings report on February 12. Previously, the French studio already cut 1,500 jobs across its studios in 2025.
So what is Ubisoft building toward instead? Part of the answer, according to the company itself, lies in cutting -edge technology -- such as AI adoption. In the press release, Ubisoft said the reorganization will be supported by 'accelerated investments behind player-facing Generative AI.'
"The new operating model will further empower the execution of the Group's strategy, centered on Open World Adventures and GaaS-native experiences, supported by targeted investments, deeper specialization, and cutting-edge technology, including accelerated investments behind player-facing Generative AI."Ubisoft's January 21st press release
The Prince of Persia: Sands of Time remake has been canceled by Ubisoft and will never be released. pic.twitter.com/TMoYMTIUcr
— The Game Awards (@thegameawards) January 21, 2026
Structurally, all of this feeds into Ubisoft’s new operating model built around five decentralized 'Creative Houses.' That includes Vantage Studios, a newly formed subsidiary centered on big-hitters like Assassin’s Creed, in which Tencent holds a 26.32% interest:
- CH1 (Vantage Studios): Focused on scaling and extending Ubisoft's largest and
most established franchises to turn them into annual billion-dollar brands. Including Assassin’s Creed, Far Cry, Rainbow Six. - CH2: Dedicated to competitive and cooperative shooter experiences. Including The Division, Ghost Recon, Splinter Cell.
- CH3: Designed to operate a roster of select, sharp Live experiences. Including For Honor, The Crew, Riders Republic, Brawlhalla, Skull & Bones.
- CH4: Dedicated to immersive fantasy worlds and narrative-driven universes. Including Anno, Might & Magic, Rayman, Beyond Good & Evil, and ironically, Prince of Persia.
- CH5: Focused on reclaiming position in casual and family-friendly games. Including Just Dance, Idle Miner Tycoon, Ketchapp, Hungry Shark, Invincible: Guarding the Globe, Uno, Hasbro.
The idea, according to Ubisoft, is to move faster and keep tighter control over where its time and money are spent. That approach leads to it delaying an 'unannounced title' set to be released in fiscal year 2026 to fiscal year 2027. Four new IPs are also currently in development, including the steampunk MOBA March of Giants acquired from Amazon, the company added.
Ubisoft CEO Yves Guillemot framed this mass restructuring as a necessary response to an increasingly unforgiving AAA market. "On the one hand, the AAA industry has become persistently more selective and competitive with rising development costs,” Guillemot said. “On the other hand, exceptional AAA games, when successful, have more financial potential than ever.” He described this move as 'a major reset' built to create the conditions for a 'return to sustainable growth over time.'
For fans and gamers, though, the immediate takeaway is simpler. Ubisoft is betting that a leaner company -- and a heavier investment in AI tools -- will steady the aimless ship. Whether that bet pays off will depend on what actually survives this 'reset.'