Ubisoft’s Revenue Decreases by 50% in Q3 Compared to Last Year

Ubisoft, the renowned French publisher, has recently experienced a significant downturn, reporting a 47.5% drop in revenue for the quarter ending in December. The company’s Q3 financials reveal a collection of €318.1 million ($344.2 million), a substantial fall from the €606.4 million ($637 million) earned in the same period the previous year. Their net bookings have also taken a hit, plummeting by 51.8% to €301.8 million.

A major chunk of their earnings, €268 million ($281.6 million), was attributed to their back catalogue, accounting for 88% of their total net bookings, although this too has seen a decline compared to last year.

Amidst these financial challenges, CEO and co-founder Yves Guillemot shared some optimistic news with investors, emphasizing their current focus: the upcoming release of Assassin’s Creed Shadows slated for March 20. “The early previews have been encouraging,” Guillemot noted, highlighting the game’s compelling narrative and immersive gameplay, showcasing both characters’ pivotal roles in the storyline. The innovative dual protagonist approach is also being praised for enhancing the gaming experience. Guillemot expressed his appreciation for the Assassin’s Creed team, recognizing their dedication and effort in creating what promises to be the franchise’s most ambitious installment.

In addition, Ubisoft is making headway with its cost-cutting strategies. Guillemot mentioned that through careful management and some tough decisions, they’ve implemented further strategic restructuring. This disciplined approach has them on track to exceed their cost reduction goal by the end of fiscal year 2025, well ahead of their initial schedule. They’re also setting sights on fiscal year 2026 to further surpass their initial targets.

Moreover, the company has begun a formal review of their strategic options as announced earlier in the year. The goal is to extract maximum value from their assets while also fostering an environment conducive to creating high-quality games in a rapidly changing market. Guillemot is confident that multiple pathways exist to realize this ambition, ultimately benefiting their stakeholders.