Ubisoft Plans Major Reconstruction Following Disappointing Finances

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Ubisoft Plans Major Reconstruction Following Disappointing Finances

For the last 10-15 years, Ubisoft released several hits a year, sometimes even in the same month, however, now more than 14 months have passed since the launch of a major AAA title, which is absolutely uncharacteristic of the French giant of the gaming industry.

This reflects badly on the finances, which Ubisoft admits are disappointing, and is planning a reconstruction. The focus on F2P and live service projects isn't paying off (yet), Mario + Rabbids: Sparks of Hope and Just Dance 2023 also underperformed, all of which prompted Ubisoft, the report says, to rethink future plans.

In the summer of last year, they canceled 4 unannounced games, now 3 more have been canceled, and in the future, the plan is to return the accent to strong IPs and switch to the old tracks with the release dynamics.

Ubisoft's statement:

"Over the past 10 years, Ubisoft teams have organically created one of the deepest and most diversified portfolios of owned IPs in the industry.

This has resulted in a significant transformation of the Group, the development of multiple major brands and much stronger recurring revenues thanks to highly successful Live Service games." "Despite these achievements, the Company is facing major challenges as the industry continues to shift towards mega-brands and long-lasting titles that can reach players across the globe, across platforms and business models.

Our strategy over the past 4 years has been about building long-lasting live games and adapting our strongest franchises, mainly Assassin’s Creed®, Far Cry®, Tom Clancy’s Ghost Recon®, Tom Clancy’s Rainbow Six® and Tom Clancy’s The Division®, to these converging trends to make them truly global brands.

However, the games from this investment phase have yet to be released, while our recent launches have not performed as well as expected. Compounding this effect, in the context of worsening macroeconomic conditions, the trends over the Holiday season, in particular the last weeks of December and beginning of January, have been markedly and surprisingly slower than expected." By March 31 of next year, they will release in order - Assassin's Creed Mirage, Avatar: Frontiers of Pandora, Skull, and Bones, several as yet unannounced "premium" titles, including "one big one", promises financial director Frederic Duguet.

However, that's not all. In the same period, he plans to release F2P titles that have not been canceled, such as The Division Heartland, XDefiant, Assassin's Creed Jade on mobile phones, and maybe a few more. As for other ventures, we are sure that Star Wars and Assassin's Creed projects are planned by Red and Hexi sometime in 2024 and the following years.