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.
