Ubisoft is struggling and it continues to bleed resources as the company has cancelled three unannounced games. The move comes as Ubisoft is said to be “facing major challenges as the industry continues to shift towards mega-brands and long-lasting titles that can reach players across the globe, across platforms and business models”.
In the last few years, we’ve been witness to talent leaving en masse, firings, project cancelations, and delays. Today, the same issues are paralyzing the French publisher and continuing to deal with the fallout of Ubisoft’s mistakes.
NEWS: Ubisoft, facing "surprisingly slower" sales, has canceled three unannounced games (on top of the four cancelled in July), planning $200 million in cost reduction including "natural attrition" and "divesting of non-core assets"
Ubisoft reveals that holiday sales slumped and were “markedly and surprisingly slower than expected”.
“However, the games from this investment phase have yet to be released, while our recent launches have not performed as well as expected.”
“We are clearly disappointed by our recent performance. We are facing contrasted market dynamics as the industry continues to shift towards mega-brands and everlasting live games, in the context of worsening economic conditions affecting consumer spending,’ said Ubisoft CEO Yves Guillemot.
“Despite excellent ratings and players’ reception as well as an ambitious marketing plan, we were surprised by Mario + Rabbids: Sparks of Hope underperformance in the final weeks of 2022 and early January. Just Dance 2023 underperformed as well.
“Therefore, with the approval of the Board of Directors, we are taking additional important strategic and operational decisions today. It is key to continue adapting our organization, to further strengthen our execution, and to ensure we both deliver amazing games to players as well as great value creation.
In total, Ubisoft expects to write down $538 million, cutting a full-year target down and also planning on a $200 million cost-cutting plan. This includes layoffs across the company and Ubisoft declined to reveal how many jobs would be affected.
“The industry’s long-term prospects remain promising, and I am convinced Ubisoft is well positioned to benefit from this momentum thanks to the strength of our teams, brands, production capacity, technology and balance-sheet. Our back-catalogue remains very healthy with notably robust activity on Rainbow Six Siege, great momentum for our Assassin’s Creed games, and generally solid performance from our live games.
“We expect our strategy to build long-lasting live games and transform our biggest brands into truly global phenomena with multiple offerings across platforms and business models, to ultimately generate significant value creation, with strong topline and operating income growth over the coming years.”
For the sixth time, Skull & Bones is now no longer launching in March 2023, moving to sometime in early 2023 – 2024. There will be a beta period, but no dates were given today.