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Ubisoft appears to be in a spot of financial trouble, according to its latest financial report on January 11th, 2023. In a three-page press release, the company admits to being “disappointed” in the sales of Mario + Rabbids: Sparks of Hope and Just Dance 2023, despite “excellent ratings” and “an ambitious marketing plan”.
Following the news, Ubisoft took a 10.5% tumble on the Dow Jones to $4.58, nearing a seven-year low for the company.
In reaction to their underwhelming financial results for 2022-23, Ubisoft has confirmed the cancellation of three unannounced games, on top of the four that were cancelled in July 2022, bringing the total to seven cancelled games in the space of just six months.
Ubisoft will also “depreciate around €500m of capitalized R&D” concerning those cancelled games, as well as several more “premium and free-to-play games” that are still in development, as well as reducing their internal costs by €200m over the next two years through restructuring, selling off assets, and “natural attrition” — in short, laying off people, and hoping that more will retire or resign.
Finally, Ubisoft’s upcoming open-world action-adventure Sea of Thieves-alike, Skull and Bones, which has already been delayed at least five times, has been delayed again from March 2023 to “early 2023-24”.
Although Co-Founder and CEO Yves Guillemot acknowledged the “underperformance” of Ubisoft’s games, his statement in the press release partially blamed “worsening economic conditions” and the games industry shifting towards what he calls “mega-brands” and “everlasting live games”.
Ubisoft CFO Frédéric Duguet remained confident that the structural reshuffling would allow Ubisoft to continue as before, stating in the press release that “our decisive reaction and our additional cost optimization measures should help us navigate the current challenging economic environment and ensure a leaner organization for the years to come.” He also placed emphasis on Ubisoft’s stable of upcoming “premium” games like Assassin’s Creed: Mirage and Avatar: Frontiers of Pandora, as well as a “large” unannounced game.
Are you looking forward to Assassin’s Creed Mirage? Did you enjoy Mario + Rabbids: Sparks of Hope? Tell us your thoughts on this news in the comments.
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