Ubisoft Downgrades Financial Outlook, Cancels Three Unreleased Games

Ubisoft has significantly revised its financial projections for the current fiscal year, announcing a series of strategic adjustments. The company had invested heavily in developing long-term live games and adapting its key franchises, such as Assassin's Creed and Far Cry, but some of these projects have yet to be released and recent launches have underperformed. The holiday season saw slower-than-expected trends, particularly in December and January, with Mario + Rabbids: Sparks of Hope and Just Dance 2023 being notable underperformers. As a result, Ubisoft has conducted a thorough review of its revenue prospects, leading to increased caution in its forecasts. The company has cancelled three unannounced projects, in addition to four previously confirmed cancellations. The repeatedly delayed Skull and Bones has been pushed back again, this time to early in the next fiscal year. Ubisoft is writing off €500 million in research and development expenses and aims to cut €200 million in operating costs over the next two years through restructuring and divestment of non-core assets. The company has reduced its net bookings target for the third quarter by 13% to €725 million and now expects a 10% year-over-year decline in net bookings for the full year, rather than the previously forecast 10% growth. Ubisoft CEO Yves Guillemot expressed disappointment with the company's recent performance, citing challenging market dynamics and worsening economic conditions that are affecting consumer spending.