Ubisoft Delays New Releases, Looks to Restructure
Ubisoft Sees Flat Sales, Delays New Games
Ubisoft, the video game company behind popular titles like Assassin’s Creed, is forecasting flat sales for the upcoming fiscal year. This news comes after the company reported a 20% drop in bookings (a measure of sales) to €1.85 billion in the just-ended fiscal year, falling short of Wall Street expectations.
More Development Time for Big Franchises
To improve their upcoming releases, Ubisoft has decided to extend development time for some of its biggest games. This means we can expect to see these titles, like Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six, a bit later than initially anticipated. This delay will push fresh revenue from these franchises into the next two fiscal years.
Tencent Investment and Restructuring
Despite these challenges, Ubisoft is looking towards the future. Earlier this year, the company announced a significant investment from Tencent Holdings Ltd. Tencent will be investing €1.16 billion in a new Ubisoft subsidiary that will house key franchises. This deal, which values the new unit at €4 billion, shows Tencent’s confidence in Ubisoft’s future.
Ubisoft’s CEO, Yves Guillemot, acknowledged the tough year, stating, “This year has been a challenging one for Ubisoft, with mixed dynamics across our portfolio, amid intense industry competition.” Guillemot also mentioned that they are working on reshaping the company’s operating model and aim to announce a new organizational structure by the end of the year.
Cost-Cutting Measures
To improve its financial situation, Ubisoft has already achieved its €200 million cost-cutting goal for the year ahead of schedule. They plan to pursue an additional €100 million in savings over the next two years. The company’s workforce has also shrunk by 1,230 employees, ending the year with 17,782 employees.
