Ubisoft, the French publishing juggernaut, recently unveiled a significant dip in its revenue for the last quarter of 2022, reflecting a drop of 47.5%.
In the company’s Q3 financial report, they recorded earnings of €318.1 million (approximately $344.2 million), which is nearly half of the €606.4 million ($637 million) generated during the same timeframe the previous year. Their net bookings mirrored this trend, plummeting by 51.8% to €301.8 million.
A substantial portion of this decline was tied to their back catalogue, which contributed €268 million ($281.6 million), or 88% of the total net bookings. However, even this figure saw a year-on-year decrease.
Despite these setbacks, CEO and co-founder Yves Guillemot expressed optimism about the future, particularly with the upcoming launch of Assassin’s Creed Shadows, slated for March 20. “The early previews have been promising,” he mentioned to investors, highlighting the game’s narrative depth and immersive experience. Guillemot emphasized the dual protagonist dynamic, praising the talented team behind the game’s development for their hard work in making Shadows the franchise’s most ambitious entry to date.
In addition to game releases, Ubisoft is making strides with their cost-cutting initiatives. “We’re on track to exceed our cost reduction goals by the end of fiscal year 2025, sooner than we planned,” Guillemot indicated. He mentioned that the company would continue their efforts into fiscal year 2026, surpassing initial targets significantly.
Lastly, Ubisoft has initiated a formal evaluation of its strategic alternatives, aiming to maximize the value of their assets for stakeholders and create optimal conditions for producing outstanding games in a rapidly changing market. Guillemot believes there are multiple avenues to achieve these aspirations.
