What's Happening?
Ubisoft CEO Yves Guillemot has announced the development of new Assassin's Creed and Far Cry games, alongside other unannounced projects. This comes as the company undergoes significant restructuring, aiming to cut fixed costs by €200 million. The restructuring involves
transforming Ubisoft into 'creative houses' focused on specific games and genres, which has already led to the cancellation of several projects and the closure of two studios. Guillemot emphasized 'disciplined workforce management,' prioritizing voluntary departures and careful recruitment. Despite these changes, Guillemot defended the appointment of his son, Charlie Guillemot, as co-CEO of Vantage Studios, a move that has sparked allegations of nepotism. Vantage Studios, funded by Tencent, will manage major franchises like Assassin's Creed and Far Cry.
Why It's Important?
The restructuring at Ubisoft reflects broader industry trends where companies are adapting to post-pandemic market realities. The focus on cost-cutting and strategic realignment is crucial for Ubisoft to remain competitive in a rapidly evolving gaming industry. The appointment of Charlie Guillemot as co-CEO raises questions about governance and leadership within the company, potentially affecting investor confidence. The involvement of Tencent, a major player in the gaming industry, highlights the increasing globalization and cross-border investments in gaming. These developments could impact Ubisoft's market position and influence its ability to innovate and deliver high-quality games.
What's Next?
Ubisoft's restructuring efforts are likely to continue, with potential further layoffs and project cancellations. The company's focus on creating 'creative houses' suggests a shift towards more autonomous and accountable business units. This could lead to more streamlined operations and potentially higher quality game releases. However, the controversy surrounding leadership appointments may require Ubisoft to address governance concerns to maintain stakeholder trust. The gaming community and investors will be closely watching how these changes affect Ubisoft's performance and its ability to deliver on its ambitious game development plans.
