Ubisoft’s shares fell below expectation in 2022. Following the grim financial statement, on Wednesday, Ubisoft CEO Yves Guillemot reportedly warned colleagues that it is their responsibility to turn around the company’s fortunes, according to The Print report.
Guillemot stated that these delays had “weighed on our costs and impacted our associated income” in an email addressed to staff on Wednesday that Kotaku was able to access. “Today more than ever, I need your full energy and commitment to ensure we get back on the path to success. I am also asking that each of you be especially careful and strategic with your spending and initiatives, to ensure we’re being as efficient and lean as possible.”
The company reduced its revenue expectation for the current fiscal year as a result of lower-than-expected software holiday sales and a new Skull & Bones delay.
Three unannounced titles were also cancelled, and the company stated that it planned to decrease costs by about €200 million over the next two years. The company told investors, “This will be achieved through targeted restructuring, divesting some non-core assets and usual natural attrition. Ubisoft will continue to look at hiring highly talented people for its biggest brands and live services.”
After concluding 2022 with weaker-than-expected sales, Ubisoft announced late on Wednesday that it was raising its writedown estimate to 500 million euros ($538 million) and lowering its full-year revenue projection. The fair value estimate for Ubisoft, according to Morningstar analysts, has been reduced from 60 euros to 35 euros “to account for the revenue drop, lower top-line growth, and potential further game delay”.
Now, Skull & Bones will be made available during Ubisoft’s following fiscal year, which spans from April through March 2024. Avatar: Frontiers of Pandora, Assassin’s Creed Mirage, and several yet-to-be-announced premium games, including a sizeable one, as well as promising free-to-play releases for some of its largest brands, will all be released during this time, according to Ubisoft.
According to rumours, both Assassin’s Creed Mirage and the Avatar video game were slated for release in 2022 before being postponed.
Guillemot further wrote in the letter: “The ball is in your court to deliver this line-up on time and at the expected level of quality, and show everyone what we are capable of achieving.”