The move comes at a time when studios are increasingly turning to video game remakes and remasters, with new versions of Super Mario Galaxy, Oblivion and Metal Gear Solid 3 proving popular in 2025.
So the decision to bin the remake of Sands of Time - which sold millions of copies in 2003 - has left many fans scratching their heads.
Ubisoft has not specified which titles it has discontinued alongside the Prince of Persia remake.
But it says among them are four unannounced titles, including three based on new intellectual property, and a mobile game.
Ubisoft has closed its studios in Stockholm, Sweden and Halifax, Canada as part of the move, which will include restructuring three others.
The developers were working on a new intellectual property (IP) and mobile titles for Assassin's Creed, respectively.
The closure of Ubisoft Halifax was previously announced in January - the same week the studio formed a union.
"While these decisions are difficult, they are necessary for us to build a more focused, efficient and sustainable organisation over the long term," Guillemot said.
"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".
Gaming industry analyst Piers Harding-Rolls told the BBC the move indicated the firm was trying to mitigate risk.
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