Ubisoft Entertainment announced a new set of measures “dedicated to strengthening its long-term growth and value-creation prospects” today, representing a massive scaleback in terms of scope and internal costs.
One set of victims of these changes is the more-than-patient fans who have been waiting on the pirate-themed Skull and Bones title, which has been postponed yet again until “early 2023-2024,” according to a statement released on the company’s investors page.
Following the underperformance of some of its more recent titles while navigating “worsening economic conditions,” the company has decided to reduce its “non-variable costs base of more than €200m over the next two years” via “targeted restructuring, divesting some non-core assets and usual natural attrition.” The company claims that it will continue to hire people during this time.
Ubisoft is also reducing the number of games it is focusing on in the near future, officially canceling three different unannounced projects, which will go hand in hand with the depreciation of 500 million euros in capitalized research and development.
Yves Guillemot, Ubisoft’s co-founder and chief executive officer, wrote that the company has been disappointed in its recent performance, namely in the financial underperformance of both Mario + Rabbids: Sparks of Hope and Just Dance 2023. Despite these games not belonging to the company’s self-described big brands such as Assassin’s Creed, Far Cry, and the Tom Clancy series (Rainbow Six and The Division), Ubisoft expected higher financial results for these titles during the holiday season.
In addition to the changes to development and cost-cutting measures, Ubisoft has also lowered its full-year targets for net revenue.
A “leaner” Ubisoft, as described by CFO Frédéric Duguet, is still expected to move forward with its 2023-2024 planned releases of Assassin’s Creed Mirage, Avatar: Frontiers of Pandora, and Skull and Bones, as well as a large yet-to-be-announced premium game plus some “promising” free-to-play titles.
