Ubisoft has reported a 31.4% decline in revenue to €990 million for the nine months ending December 31, 2024, and a 51.8% drop in net bookings during its third quarter. The French game developer attributed this decline primarily to the lack of new game releases in the period.
Despite these challenges, Ubisoft remains optimistic about its future prospects, particularly with the upcoming release of Assassin’s Creed Shadows on March 20. Pre-sales for the title are tracking solidly, with expectations comparable to Odyssey, the franchise’s second-highest earner.
In its earnings call, CFO Frederick Duguet highlighted that net bookings in Q3 were in line with revised expectations, and Ubisoft expects an increase in net bookings following the release of Shadows. The company also reported a resilient performance from its online tactical shooter Rainbow Six Siege, which achieved its highest monthly average revenue per paying user since its 2015 launch.
Ubisoft has been undertaking cost reduction efforts to improve its financial performance, with recent cuts at several studios across the UK. However, the company plans to pursue further targeted restructuring in the coming years, aiming to exceed its initial cost reduction plan by the end of FY25.
In a broader context, Ubisoft is considering various strategic options, including potential acquisition or buyout from Tencent, which was first reported last month. The company has stated that it would not comment on specific rumors and would only inform the market if such a transaction materializes.
Source: https://www.gamesindustry.biz/ubisoft-revenues-decline-314-to-990m