Ubisoft shares have fallen by as much as 35% after the cancellation of six upcoming games and the restructuring of the company, which includes layoffs and the closure of two studios.
Ubisoft has announced a comprehensive organizational and operational reset, which includes the cancellation of six in-development projects, notably the Prince of Persia: Sands of Time remake. This remake, initially unveiled in 2020, has faced development challenges and is now shelved indefinitely. The company's strategic pivot is a response to changes in the gaming industry, focusing on open-world games and "Games as a Service" (GaaS) experiences, supported by investments in generative AI. Ubisoft has created "Creative Houses" for dedicated teams to enhance brand focus and streamline development. Despite the cancellations, Ubisoft is developing four new intellectual properties, including March of Giants. Additionally, seven upcoming titles have been delayed, with speculation surrounding the remake of Assassin's Creed: Black Flag and other potential candidates like The Division 3 and the remake of Splinter Cell.
Hytale has officially entered early access after a decade of development challenges. The game's announcement trailer from 2018 has received 62 million views. On launch day, Hytale became the most-watched game on Twitch with over 420,000 viewers. Players are encountering challenges with wildlife, particularly bears. Hytale has secured funding for two years of early access development, and expectations are high for over one million players on launch day. There has been a significant spike in global search interest for Hytale on Google Trends. Initial technical issues have arisen, and the development team is working on a hotfix to address bugs and account verification delays due to high demand.
In 2026, the gaming industry is experiencing a push for unionization among developers, highlighted by a legal dispute involving Rockstar Games and former developers of GTA 6. The proposed billion-dollar acquisition of Electronic Arts (EA) could reshape North American gaming, potentially leading to significant cuts and debt for EA. A healthier dialogue about the portrayal of sex in gaming is emerging amid a crackdown on adult-themed games. Microsoft faces job cuts and project cancellations while announcing record profits, raising ethical concerns about its partnerships and creative stagnation. The ongoing conflict in Ukraine presents challenges for developers, influencing future game narratives. Additionally, the generative AI boom is disrupting RAM availability and pricing, potentially increasing costs for gaming hardware.
In 2025, Microsoft faced challenges including a slow migration to Windows 11 after the end of Windows 10, with many users opting to stay on the older system due to free Extended Security Updates. The anticipated rush to Windows 11 did not occur, partly because many older PCs did not meet the new system requirements. Microsoft increased its focus on AI integration in Windows 11, but this initiative faced backlash from users concerned about unnecessary features and existing bugs. The annual upgrade brought only minor improvements, and persistent bugs continued to affect user experience, particularly for gamers, who faced disruptions amid rising competition from platforms like SteamOS. Additionally, a significant price increase for Xbox Game Pass led to subscriber cancellations, although revenue remained high. Xbox console sales dropped by 70% year-on-year, while the Surface hardware division did not achieve the same success as the previous year, with new devices failing to generate excitement.
Arkane Studios unveiled their latest project, Blade, at The Game Awards 2023, but concerns have arisen due to the lack of updates and its absence from the Xbox Games Showcase. The game's silence intensified speculation after it did not appear at the Game Awards 2025. Arkane's co-creative director, Dinga Bakaba, reassured fans on social media that the team is dedicated to delivering a special game. The studio faces challenges, as their previous title, Prey, struggled commercially, and the disappointing performance of Redfall led to the closure of Arkane Austin in 2024. Additionally, Microsoft's focus on artificial intelligence and recent layoffs in its gaming division have raised concerns about the future of game development. The success of Blade is critical for Arkane, as it has the potential to offer a unique take on superhero narratives.
Techland, a gaming developer known for the Dying Light series, has faced challenges this year by canceling two projects mid-development but did not lay off employees. The company is moving forward with new initiatives, including a job posting for a Lead Online Game Designer to create "a new online experience in the Dying Light franchise." This position focuses on developing engagement mechanisms, in-game economy, and progression systems. There are speculations about a fantasy RPG that was shelved and a potential new entry in the Call of Juarez series. Techland continues to support Dying Light The Beast with updates, indicating ongoing community interest.
Netflix has acquired Warner Bros. Discovery in a deal valued at nearly billion, which includes assets such as HBO, HBO Max, the DC Universe, and game studios. Despite this acquisition, Netflix's interest in expanding its gaming initiatives appears limited, as the company is shifting focus towards investments in generative AI. Warner Bros. has experienced both successes and challenges in its gaming division, with notable titles like Hogwarts Legacy and failures such as Suicide Squad: Kill the Justice League leading to restructuring and project cancellations. The future of Warner Bros. Discovery and its gaming division remains uncertain amidst ongoing industry changes.
Jackalyptic Games, which was developing a Warhammer MMO, has ended its partnership with NetEase Games after nearly three and a half years. This is the third studio to be affected by NetEase's actions this week, contributing to a total of six Western studios that have closed this year. CEO Jack Emmert announced the situation on LinkedIn, indicating uncertainty for the studio's future, as many team members are now seeking new jobs. The trend of studios being abandoned by NetEase includes others like Fantastic Pixel Castle, Bad Brain, and T-Minus Zero, raising concerns about the viability of MMO development amid a challenging industry landscape marked by layoffs and project cancellations.
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