Ubisoft is currently facing challenges as they have had to cancel three more games in addition to the four previously cancelled last summer. Furthermore, the highly anticipated game “Skull and Bones” which was initially showcased at E3 2017 has been delayed yet again, this time to the early part of the 2023-24 fiscal year starting in April. This marks the sixth delay in the game’s release.
According to Ubisoft’s financial statement, players will soon have the opportunity to experience the beauty of Skull and Bones during the beta phase. The extra time has been beneficial for the game’s development, resulting in noticeable improvements in quality, as confirmed by recent playtests. Ubisoft believes that players will be pleasantly surprised by the game’s evolution and has decided to delay its release to ensure that a more polished and balanced experience is delivered and to increase awareness.
In addition to the delays and cancellations, Ubisoft has also lowered its financial projections for the October-December quarter from €830 million ($891 million) to €725 million ($779 million). The company attributes this to the underperformance of the games “Mario + Rabbids: Sparks of Hope” and “Just Dance 2023” in the market. CEO Yves Guillemot stated that the company is facing a challenging market, with a shift towards mega-brands and games with ongoing content, coupled with worsening economic conditions affecting consumer spending.
Ubisoft has lowered its net bookings forecast by 10 per cent, which is a significant drop from its previous expectation of a 10 per cent increase in revenues. As a result, Ubisoft has also reduced its estimated operating income for the year by around $1 billion.
In order to address these challenges, the company is taking steps to focus on fewer games and to reduce costs. Ubisoft is depreciating €500 million ($538 million) in research and development costs for the cancelled games, as well as for its upcoming premium and free-to-play titles. Additionally, the company plans to reduce costs by over €200 million ($215 million) in the next two years through targeted restructuring, divesting some non-core assets and natural attrition. However, despite these cost-saving measures, Ubisoft will continue to hire “highly talented people” for its major projects.
One of the major games that Ubisoft has on the docket for this year is Assassin’s Creed Mirage. Additionally, the company has another big title in the works, Avatar: Frontiers of Pandora, which is scheduled to be released by the end of March 2024. Ubisoft also has other unannounced premium games in the pipeline for the next fiscal year, including “a large one”. Additionally, the company is working on free-to-play titles for some of its most popular brands. Given the current state of the company, it will be essential for these games to be successful in order to meet its financial goals.
