Ubisoft’s Shares Plummet After Revised Targets

Ubisoft experienced a 4.5% decline in its share price on Wednesday after adjusting its financial forecasts for the fiscal year 2024-25.

In a recent announcement, Ubisoft revealed that it anticipates net bookings of approximately €1.95 billion, along with aiming for break-even non-IFRS operating income and free cash flow. The company has also set net bookings for the second quarter of FY2024-25 at around €350-370 million.

This adjustment follows the postponement of the release for “Assassin’s Creed Shadows” and a weaker-than-expected launch for “Star Wars Outlaws.”

“Assassin’s Creed Shadows,” which was originally scheduled for an earlier debut, has now been rescheduled for February 14, 2025, to allow for additional refinement.

Ubisoft emphasized that this decision stems from a player-focused philosophy, drawing insights from the recent launch of “Star Wars Outlaws.”

The company described “Star Wars Outlaws” as “the biggest entry in the franchise,” highlighting its goal to offer a “dual-protagonist adventure” with improved gameplay mechanics.

Despite receiving favorable reviews (76 on Metacritic) and solid user ratings (3.9/5 on both First Party and Epic stores), “Star Wars Outlaws” has seen disappointing initial sales, according to Ubisoft.

The development teams are currently working on updates aimed at enhancing the player experience, hoping to increase sales during the holiday season. The game is set to be available on Steam starting November 21.

Yves Guillemot, Ubisoft’s CEO, acknowledged the company’s recent performance issues, stating, “Our second quarter performance fell short of our expectations, prompting us to address this swiftly and firmly, with an even greater focus on a player-centric, gameplay-first approach and an unwavering commitment to the long-term value of our brands.”

He emphasized their ongoing dedication to creating games that resonate with fans and players alike, and outlined Ubisoft’s strategy moving forward, which will concentrate on open-world adventures and games as a service (GaaS) experiences to foster long-term growth and free cash flow.