Seems like things are not going well inside Ubisoft as a new report has stated that 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.”
The company mentioned that they have spent over four years trying to adapt to the ever-changing market by adopting new trends to their already big brands Assassin’s Creed, Far Cry, Ghost Recon, Rainbow Six and The Division; however, some of their most recent launches have not performed as expected and there are other ones that are still in production.
In case you missed it: Various Assassin’s Creed titles are arriving at Ubisoft+ Classics
Sacrifices need to be made
Actually, some of their most anticipated games like Mario + Rabbids: Sparks of Hope and Just Dance 2023 had slower sales than expected this holiday season and sadly failed to meet expectations. This of course had led to the delay or complete cancellation of some titles, for example, the long-awaited pirate adventure Skull and Bones has been delayed and will now arrive during Ubisoft’s next fiscal year 2023-24, which runs from April until March 2024.
On the other hand, the company wants to make some €200 million in cost cuts over the next two years in Ubisoft’s CEO Yves Guillemot own words:
“With the approval of the Board of Directors, we are taking additional important strategic and operational decisions today. It is key to continue adapting our organization, to further strengthen our execution and to ensure we both deliver amazing games to players as well as great value creation.”
Guillemot continued: “The industry’s long-term prospects remain promising, and I am convinced Ubisoft is well positioned to benefit from this momentum thanks to the strength of our teams, brands, production capacity, technology and balance-sheet. Our back-catalogue remains very healthy with notably robust activity on Rainbow Six Siege, great momentum for our Assassin’s Creed games, and generally solid performance from our live games.
“We expect our strategy to build long-lasting live games and transform our biggest brands into truly global phenomenon with multiple offerings across platforms and business models, to ultimately generate significant value creation, with strong topline and operating income growth over the coming years.”
Things are definitely difficult but the company is trying, do you think this strategy is going to help them out?
Remember to stay tuned for more updates, here at Level Up.
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