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Today, Ubisoft’s stock has dropped by 20% due to the delay of Assassin’s Creed Shadows and lower than expected sales of Star Wars Outlaws. The company has adjusted its financial targets for the current fiscal year, now aiming for break-even non-IFRS operating income.
In addition, Ubisoft’s Q2 performance has not met expectations, with reduced forecasts of €350 million to €370 million in net bookings, down from the previous target of €500 million. The company now anticipates generating approximately €1.95 billion in net bookings this fiscal year.
Market Decline
As a result of the revised estimates, Ubisoft’s shares have significantly declined. The stock has been on a steady downward trend since February 2021, plummeting from €85.15 per share to €9.08 per share at present. Over the past five days, shares have fallen by 29.3%, marking an 86.5% decline since September 2019.
To address the underperformance, Ubisoft plans to make enhancements to Star Wars Outlaws before the holiday season and postpone the release of Assassin’s Creed Shadows to February 14th, 2025, to ensure the title is polished and meets high standards.
Assassin’s Creed Shadows will also introduce a shift away from the Season Pass model, offering the first expansion at no extra cost to fans who pre-order the game.
Commitment to Excellence
CEO Yves Guillemot expressed a commitment to delivering top-quality experiences to players, emphasizing a player-centric approach and a focus on open-world adventures and GaaS-native experiences to drive growth and free cash flow in the business.
In response to the disappointing quarter, Ubisoft’s executive committee will conduct a review to evaluate the company’s execution, player-centric strategy, and path towards a more successful model.
