Beyond Good and Evil 2: How a 19-Year Development Saga Survives Ubisoft's Restructuring

In the volatile landscape of modern game development, few stories are as paradoxical as that of Beyond Good and Evil 2. For nearly two decades, it has existed in a state of perpetual "development hell," a byword for ambitious vaporware. Yet, in January 2026, when Ubisoft initiated a severe corporate restructuring—canceling projects, closing studios, and laying off nearly 1,700 employees—this legendary phantom did not just survive; it was declared officially "unaffected." While established franchises like Prince of Persia faced major setbacks, Ubisoft's most elusive project emerged unscathed from the corporate upheaval. This raises a compelling question for the industry and its observers: In an era defined by ruthless fiscal pragmatism, how does a 19-year odyssey with no release date in sight become untouchable?

The Ubisoft Restructuring: Layoffs, Cancellations, and Stock Collapse

The stage for this drama was set by a severe corporate crisis. On January 30, 2026, Ubisoft announced a sweeping restructuring plan, one of the most significant in its history. The human and creative cost was staggering: approximately 1,700 employees faced layoffs, an undisclosed number of studios were shuttered, and at least six in-development projects were terminated. The cancellations were not minor experiments; they included the long-awaited Prince of Persia: The Sands of Time remake—a project already plagued by delays—one mobile game, and four unannounced titles for console and PC.

This drastic action did not occur in a vacuum. It was a direct response to a precipitous financial decline. Just days prior, on January 22, Ubisoft's stock price had plummeted by a staggering 39%, crashing to a nearly 15-year low. Investor confidence had evaporated, creating a dire imperative for the publisher to cut costs, streamline operations, and refocus on its most reliable revenue streams. The atmosphere was one of triage, where any project perceived as a risk or not central to the new corporate strategy was vulnerable. Against this bleak backdrop, the survival of any project, let alone one as historically troubled as Beyond Good and Evil 2, seemed improbable.

A Beacon in the Storm: The "Unaffected" Announcement

Amid the gloom, a singular message cut through the noise. Fawzi Mesmar, the Creative Director of Beyond Good & Evil 2, took to LinkedIn to address the community and his colleagues. His statement was a study in contrasting emotions. He confirmed the project and its team were "unaffected" by the restructuring, stating they remain "committed and focused on delivering a remarkable game." However, this commitment was tempered with palpable sorrow. Mesmar expressed being "saddened" by the cancellations and layoffs impacting his colleagues across Ubisoft, acknowledging the human toll of the corporate decision.

Crucially, his post provided new administrative context for the game's journey. Beyond Good and Evil 2 is now housed within Ubisoft's "Creative House 4," one of several new divisional structures. This house is specifically tasked with developing "immersive fantasy worlds and narrative-driven universes," a portfolio that also includes Might & Magic, Rayman, and, ironically, the Prince of Persia franchise whose remake was just canceled. This placement is the first clear signal in years of the specific creative lane Ubisoft envisions for the title: not merely a game, but a foundational narrative universe.

The 19-Year Odyssey: A History of Turbulence and Hope

To understand the shock of its survival, one must appreciate the depth of its struggle. The saga began in 2007 under the visionary direction of series creator Michel Ancel. After a decade of silence, it was dramatically re-revealed at E3 2017, followed by a sprawling gameplay showcase in 2018 that promised a vast, solar-system-spanning prequel. Since then, the path has been marked by profound turbulence.

Key figures have departed at critical junctures. Michel Ancel left Ubisoft and the gaming industry entirely in 2020. Then, in 2023, the project was struck by tragedy with the death of its creative lead, Emil Morel. These events would have doomed lesser projects. Yet, faint signs of life have persisted. In late 2025, job listings for key roles like Lead Quest Designer appeared, confirming active, ongoing development. Despite this, the game still lacks a confirmed release date, a fact that has become a defining characteristic of its legacy. It exists in a state of permanent "almost," a testament to both unwavering ambition and immense challenge.

Why Survive? Analyzing BG&E2's Strategic Immunity

In a restructuring designed to eliminate risk, why was Beyond Good and Evil 2 granted immunity? Several strategic factors appear to have converged to shield it.

First, its value is more than commercial; it is prestige. The original 2003 title, while not a sales juggernaut, is a hallowed piece of critical canon. The sequel carries the weight of that legacy—a promise of artistic integrity and narrative ambition that Ubisoft can point to as evidence of its creative soul. Canceling it now, after 19 years of public hope, would inflict catastrophic reputational damage, potentially far exceeding the cost of its continued, careful development.

Second, its scope aligns perfectly with the newly stated mandate of Creative House 4. As a narrative-driven, universe-building sci-fi epic, it is the epitome of an "immersive fantasy world." In Ubisoft's reshaped identity, it may be seen not as a rogue risk, but as a flagship prototype for the kind of experience the company wants to be known for in this new era.

Finally, there is the sheer weight of the sunk cost fallacy, transformed into determined commitment. After investing nearly two decades, countless developer hours, and maintaining its place in the public imagination through cinematic trailers and community engagement, Ubisoft may have concluded that seeing it through—however long it takes—is the only viable option. The project has transcended standard metrics of development; it has become a symbol, and symbols can be powerful assets for a company in need of a compelling story.

Beyond Good and Evil 2's survival is a cultural statement as much as a business one—an acknowledgment that some projects carry a symbolic weight that defies spreadsheets. For now, the odyssey continues, its destination as mysterious as ever, but its flame still flickering in Ubisoft's restructured house.