Ubisoft Adjusts Financial Projections Following Underwhelming Sales of Recent Titles

Ubisoft has revised its financial outlook, anticipating net bookings of approximately €1.95 billion, alongside break-even non-IFRS operating income and free cash flow. Initially, the company expected second-quarter net bookings to reach around €500 million, driven by the release of Assassin's Creed Shadows and Star Wars Outlaws in the 2024-25 lineup. However, due to softer-than-expected sales of Star Wars Outlaws, released in late August, Ubisoft has pushed back the launch of Assassin's Creed Shadows to February 2025. The decision was made to allow for additional polishing of the title, despite it being feature complete. The publisher has also shifted away from the traditional Season Pass model, ensuring all players can access the game simultaneously on February 14, with pre-order customers receiving the first expansion free of charge. CEO Yves Guillemot acknowledged the second quarter's underperformance, emphasizing the need for a swift and firm response, with a renewed focus on player-centric and gameplay-first approaches. Guillemot reaffirmed the company's commitment to its long-term strategy, centered on Open World Adventures and GaaS-native experiences, aiming to drive growth, recurrence, and robust free cash flow generation. In light of recent challenges, the executive committee is conducting a review to enhance execution and accelerate the company's strategic path toward a higher-performing model, benefiting stakeholders and shareholders. This move comes as Ubisoft's share price has plummeted over 50% in the last year, nearing a 10-year low, prompting an investor to suggest the company should go private.