French publishing giant Ubisoft has recently disclosed a significant downturn in its financial performance for the three months ending in December. The company reported a staggering 47.5% decline in revenue, bringing in €318.1 million (4.2 million), a stark contrast to the €606.4 million (7 million) recorded during the same period last year. This decline is mirrored in net bookings, which plummeted by 51.8% to €301.8 million for the quarter.
Back Catalogue Performance and Future Prospects
Interestingly, the back catalogue contributed a substantial €268 million (1.6 million), accounting for 88% of total net bookings, although this segment also experienced a year-on-year decline. In light of these challenges, CEO and co-founder Yves Guillemot expressed optimism regarding the upcoming launch of Assassin’s Creed Shadows, scheduled for March 20. He noted that early previews have been encouraging, highlighting the game’s narrative depth and immersive experience. The dual protagonist approach is expected to enhance gameplay, with both characters playing pivotal roles in the unfolding storyline.
Guillemot commended the exceptional talent and dedication of the Assassin’s Creed team, emphasizing their commitment to making this installment the franchise’s most ambitious entry to date. “We are fully focused on the upcoming launch,” he stated, underscoring the team’s tireless efforts to meet the high expectations surrounding the game.
Cost Reduction Initiatives and Strategic Review
In parallel with the game launch preparations, Ubisoft is making strides in its cost reduction program. The company has implemented targeted restructurings, making difficult yet necessary decisions. As a result, Ubisoft anticipates exceeding its cost reduction objectives by the end of FY25, ahead of schedule. Plans are in place to continue these efforts into FY26, aiming to surpass initial targets significantly.
Additionally, the formal review process of Ubisoft’s strategic options, announced earlier this year, is currently underway. The primary goal is to unlock maximum value from the company’s assets for stakeholders while fostering optimal conditions for creating exceptional games in a rapidly evolving market. Guillemot expressed confidence that various potential paths exist to achieve this ambition, indicating a proactive approach to navigating the challenges ahead.
