Ubisoft’s Financial Woes Deepen Amidst High Hopes for ‘Assassin’s Creed Shadows’

Ubisoft, the French video game company, has shared its financial results for the nine months ending December 31, 2024. The company reported revenues of €990 million, marking a 31.4% decrease compared to the same period the previous year. Net bookings also fell by 34.8%, totaling €944 million. Digital net bookings reached €784 million, a decline of 33.8%, while back-catalogue net bookings stood at €762.3 million, down 27.7%.

In the three months leading up to December 31, 2024, Ubisoft’s net bookings were €301.8 million, with digital net bookings accounting for €257.4 million. This represents a significant 51.8% year-on-year drop in net bookings for the third quarter. However, the company noted that this outcome aligned with its revised expectation of €300 million for the period.

Despite these financial challenges, Ubisoft is optimistic about the upcoming quarter. The company anticipates an increase in net bookings following the release of ‘Assassin’s Creed Shadows’ on March 20. Pre-sales for this title are reportedly “tracking solidly,” comparable to those of ‘Assassin’s Creed Odyssey,’ the franchise’s second-highest earner. Early previews have praised the game’s narrative and immersive experience, highlighting the dual protagonist approach featuring a shinobi assassin and a samurai. Ubisoft’s CEO, Yves Guillemot, commended the Assassin’s Creed team for their dedication to delivering what he describes as the franchise’s most ambitious entry yet.

In the first nine months of the fiscal year, Ubisoft recorded 36 million monthly active users across console and PC. Playtime and session days per player increased by 4% and 7%, respectively. The online tactical shooter ‘Rainbow Six Siege’ delivered a resilient performance during the third quarter, experiencing growth in session days per player. By the end of the quarter, the title achieved the highest monthly average revenue per paying user since its release in 2015. Additionally, ‘The Crew Motorfest’ saw its highest monthly player count during the quarter, with session days increasing 38% year-on-year. The company noted that its retention and monetization metrics continue to significantly outperform those of ‘The Crew 2’ since launch.

Regarding its ongoing cost reduction plan, Ubisoft stated that it is ahead of schedule following recent cuts at two UK studios—Leamington and Reflections—as well as Ubisoft Düsseldorf and Ubisoft Stockholm. In December, the company announced it would sunset its free-to-play shooter ‘XDefiant’ this year, leading to the closure of two production studios and layoffs affecting almost 300 employees. Despite these measures, Ubisoft has announced further targeted restructuring but has not specified what this will mean for employees across its portfolio. Guillemot emphasized that, as a result of disciplined execution, the company now expects to exceed its cost reduction plan by the end of FY25, ahead of schedule, and plans to pursue efforts in FY26, going beyond the initial target by a significant margin.

Guillemot also provided an update on the ongoing formal review of Ubisoft’s strategic options, which was announced last month. He stated that the objective is to unlock the best value from the company’s assets for stakeholders and to foster the best conditions to create great games in a fast-evolving market. Guillemot expressed confidence that there are different potential paths to achieve this ambition.

While Ubisoft faces significant financial challenges, the company is placing considerable hope on the success of ‘Assassin’s Creed Shadows’ to drive a turnaround in its fortunes.